RBL Bank chief sells shares worth Rs 38.5 cr to meet 'personal commitments'

Private sector RBL Bank on Friday said its managing director and CEO Vishwavir Ahuja has sold shares worth over Rs 38.5 crore in the bank, mainly to service personal debt and meet family commitments.

"We have received an intimation from Vishwavir Ahuja, Managing Director and CEO of the bank, mentioning that he has sold 18,92,900 shares of RBL Bank on 27th and 28th of August, 2020 for approximately Rs 38.52 crore," RBL Bank said in a regulatory filing.

The sale has been driven primarily with the need to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise and purchase vested ESOPs (and pay associated tax), as well as to take care of some pressing family commitments, the bank said.

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The sale represents approximately 18 per cent of his/family's total holdings and Ahuja continues to retain 80,10,000 shares (approximately 1.6 per cent holding) of RBL Bank post the sale of these shares, it added.

"I wish to sell 18,92,900 shares of RBL Bank at the prevailing price to meet pressing financial commitments. This is a small part, approx. 18 per cent of my/my family's aggregate holdings as on date. I intend to start executing the same post approval and please keep the approval valid until September 1st, 2020," Ahuja said in its intimation addressed to the compliance officer.

"While I have sold a small part of my shareholding in the bank, I strongly believe that RBL Bank has a robust balance sheet and business franchise, is well capitalised and fortified to deal with the economic impact of the prevailing pandemic situation confronting the nation, and extremely well positioned to exploit market opportunities in the short as well as long term," he added.

The chief of the private sector lender said RBL Bank has strong growth prospects over the next several years, especially in areas which it has chosen to scale up.

"We continue to walk down the transformation journey that started 10 years ago, and believe that the current economic disruptions will only further accelerate the opportunities that present themselves to a technologically led bank such as ours, which I continue to lead with full commitment and thereon to build a market leading organisation," he said.

Stock of RBL Bank closed at Rs 210.60 apiece on the BSE, up 3.97 per cent from the previous close.