InvestorQ : What has happened to RBL Bank and is it true that Rakesh Jhunjhunwala has made a bid to buy RBL Bank?
Dawn Cherian made post

What has happened to RBL Bank and is it true that Rakesh Jhunjhunwala has made a bid to buy RBL Bank?

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Mitali Bhutta answered.
5 months ago
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The weekend was interesting for RBL Bank as the CEO Vishwavir Ahuja was asked to go on indefinite leave and Rajeev Ahuja was appointed the interim CEO in his place. Meanwhile, in a rather significant move, the Reserve Bank also nominated Yogesh Dayal to the board of RBL Bank with immediate effect, raising a lot of doubts in the minds of investors and depositors whether RBL Bank may become another basket case like Yes Bank.

After the recent experience of Yes Bank, many market sceptics have raised red flags about a Yes Bank like situation in RBL Bank too. While the bank has shown reasonably sound net NPAs of around 2.14%, the market is clearly not buying such data. There have been consistent murmurs about the fault lines in the asset quality of RBL Bank and these had come to the fore after the fiasco surrounding Café Coffee Day last year.

However, in a rather interesting development, it was also reported that two of India’s most respected equity investors; Rakesh Jhunjhunwala and RK Damani had approached RBI to buy 10% in RBL Bank. Neither the two investors nor RBL Bank nor the Reserve have either confirmed or denied these news reports. However, it is very likely that RBL Bank is likely to open under intense pressure on Monday and some kind of support at lower levels would be seriously called for.

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