RBI to now not have director on RBL Financial institution board as extra director’s time period ends

Reserve Financial institution of India will now not have a director on the board of RBL Financial institution following the tip of time period of extra director Yogesh Okay Dayal, the non-public sector notified the exchanges.

The central financial institution had in December 2021 had appointed Dayal, Chief Common Supervisor of RBI, as an extra director on the board of the financial institution for 2 years until December 23, 2023 or until additional orders, whichever was earlier.

Dayal’s appointment had come amid the sudden exit of Vishwavir Ahuja as MD and CEO in December 2021 on account of medical causes. Government Director Rajeev Ahuja  then took over as interim MD and CEO, following which the RBI authorised the appointment of R Subramaniakumar as the pinnacle in July 2022 for a interval of three years.

The administration change had led to some considerations relating to the well being of the non-public sector financial institution, with studies then suggesting regulatory considerations relating to the highest administration and the excessive share of riskier unsecured loans within the financial institution’s portfolio. Nonetheless, the central financial institution had later clarified that the financial institution’s monetary well being stays steady.

The lender posted a internet revenue of ₹294 crore for Q2 FY24, up 46 per cent y-o-y and a couple of per cent sequentially. Gross NPA ratio stood at 3.12 per cent and internet NPA ratio at 0.78 per cent as of September 2023.