Shares of the bank fell nearly 10% on Thursday after it informed the exchanges that the Reserve Bank of India (RBI) had approved the appointment of interim MD & CEO Rajeev Ahuja for only three months with effect from December 25 or until the appointment of a regular MD & CEO, whichever is earlier.
Last weekend, the RBI had appointed Yogesh Dayal as an additional director on the board of the bank, a move which was immediately followed by the bank’s MD & CEO Vishwavir Ahuja proceeding on medical leave. In an investor call on Sunday, RBL Bank said that the appointment of Ahuja — part of the existing management team — as interim CEO was a measure of the RBI’s confidence in the bank.
In an exchange notification, the bank said that the search committee will comprise the chairman of the nomination & remuneration committee, two members of the board and one external expert to identify and evaluate candidates for the position of MD & CEO — both from within and outside the bank.
According to sources, the bank had been dragging its feet in the search process although there were only six months left for Vishwavir Ahuja to complete his term. Sources also said that the bank had not moved fast enough for the RBI, which requires a few months to complete the fit and proper appraisal of proposed candidates.