2. RBL Bank, formerly known as Ratnakar Bank,
is an Indian private sector bank headquartered
in Mumbai and founded in 1943. It offers services
across six verticals: corporate and institutional
banking, commercial banking, branch and
business banking, retail assets, development
banking and financial inclusion, treasury and
financial market operations.
3. WHAT HAPPENED IN RECENT
DAYS
In December 2021, an announcement
from RBL bank informed the markets
about the medical leave of MD and CEO,
Mr Vishwaveer Ahuja replacing him with
Mr Rajeev Ahuja as the interim MD and
CEO. At the same time RBI nominated Mr
Yogesh Dayal as its director to the RBL
bank board for 2 years. Amid fears of this
sudden action, the stock price crashed
and brokerages re-evaluated their ratings
4. POINT WISE ANALYSIS
1. Sudden medical leave by MD and CEO
ANALYSIS :
MD and CEO are one of the top positions of any company and
they have knowledge about all the business affairs and the
working of the company , and such a notice by the company all
of sudden leads to the panic in the market , it force people and
all the stakeholders to think whether everything in the
company is going well or not because the officials at that
position are more likely to know about anything going to
happen in the company in the future . Same happened with it
and people started withdrawing their money from the
company .
5. 2.APPOINTMENT OF INTERIM BY RBI SO QUICKLY
ANALYSIS :
Generally RBI does not take such decisions o quickly unless
until it feels something is wrong with the particular bank .
Though , RBI is saying everything is fine with the bank but the
sudden medical leave by CEO and MD and so quickly
appointment of interim of RBI in the BOD raise a various type
of doubt in people mind like , is RBI trying to manage the
things so as to tackle the panic among public and to keep the
trust of the public alive on the commercial bank , is RBL Bank
going to be next YES Bank and many more . Also this means
that RBI does not want to take any chance which would lead
to disbalance in the economy .
7. As soon as this news came in the market along with it one
more news also came into the market that Mr. Rakesh
Jhunjhunwala and Mr. Radhakishnan Dmani have reached
out RBI with an urge to increase shareholding upto 10% in
the company , which was later on confirmed by the officials
of the bank that the “news spread in the market is fake we
haven’t received any such request” . So we can conclude
that whenever something comes big in the market people
start making manipulation according to them , so blindly
don’t believe on everything unless you have proper official or
reliable source for that .
8. 1. Whenever the officials at higher position in the company leaves
, resign or go on leave all of a sudden understand that there is
some problem in the company .
2. Complementary to it whenever the higher officials increases
their stake in the company that means they have much confident
on the company and everything is fine and something good is
going to come up in future
3. Don’t trust on anything or any news coming in the market
without confirmation from reliable source .
4. Even when you didn’t know about this news the chart was
falling that means someone was having the news about this , so
always remember the key rule “charts tell you everything”
