RBL Bank’s total deposits declined by 2.58 per cent quarter-on-quarter (q-o-q) to ₹73,637 crore as at December-end 2021 against ₹75,588 crore as at September-end 2021, according to provisional business numbers.
As at December-end 2021, the private sector bank’s total deposits, however, rose 9.61 per cent year-on-year (y-o-y) from ₹67,184 crore as at December-end 2020, the bank said in a regulatory filing.
During the third quarter, the bank’s low-cost current account savings account (CASA) deposits declined by ₹1,418 crore to ₹25,316 crore as at December-end 2021. CASA deposits accounted for 34.4 per cent of total deposits as at December-end 2021, down from 35.4 per cent as at September-end 2021.
Retail deposits and deposits from small business customers declined to 37.8 per cent of total deposits as at December-end 2021 against 41.6 per cent as at September-end 2021. Liquidity coverage ratio/LCR (average for the quarter) was at 146 per cent as at December-end 2021 against 155 per cent as at September-end 2021.
RBI appoints interim MD
The bank, on December 30, 2021, said the Reserve Bank of India (RBI) has approved the appointment of Rajeev Ahuja as Interim Managing Director and CEO of the bank for a period of three months with effect from December 25, 2021 or till the appointment of a regular MD and CEO, whichever is earlier.
The bank’s board, at its meeting on December 25, 2021, had accepted the request of long-standing MD and CEO Vishwavir Ahuja to proceed on leave. On December 24, 2021, the RBI had appointed an additional director – its Chief General Manager Yogesh K Dayal – on the bank’s board.
Referring to the speculation relating to RBL Bank in certain quarters, which appeared to arise from recent events surrounding the bank, the RBI, on December 27, said there is no need for the bank’s depositors and other stakeholders to react to the speculative reports.
The Central bank added that the bank’s financial health remains stable. Calling attention to RBL Bank’s half yearly audited results as on September 30, 2021, the RBI said the bank has maintained a comfortable capital adequacy ratio of 16.33 per cent and provision coverage ratio of 76.6 per cent.
In a media call on December 26, Rajeev said RBL Bank and its management team has full support of the RBI. He emphasised that the bank has excess liquidity of about ₹15,000 crore, refinance from RBI and bank lines to manage any volatility in deposits.
Rajeev underscored that these developments are not on account of any concern on advances, asset quality and deposits level of the bank.