RBL Bank's Vishawvir Ahuja has stepped down as MD & CEO of the bank, and the bank has appointed Rajeev Ahuja as the interim Managing Director and Chief Executive Officer of the bank with immediate effect.

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Vishawvir Ahuja has gone on a leave with immediate effect.

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RBL Bank's Vishawvir Ahuja stepping down as Managing Director (MD) & Chief Executive Officer (CEO) of the bank six months prior to the ending of his term has raised several questions over the corporate governance of the bank.

Meanwhile, Reserve Bank of India (RBI) has also inducted its nominee on the board of the RBL Bank for 2 years. The RBI has appointed its Chief General Manager Yogesh K Dayal as an additional director on the board of RBL Bank according to a PTI report.

The board in a meeting held on Saturday appointed Rajeev Ahuja (currently the Executive Director) as interim Managing Director & Chief Executive Officer of the bank with immediate effect, subject to the regulatory and other approvals, the bank said.

However, in its explanation, the newly appointed interim MD & CEO Rajeev Ahuja has said that the current development has no connection with the current financial condition or asset quality of the bank and that the financial condition of RBL Bank is quite strong.

On the question of liquidity raised by Zee Business, Rajeev Ahuja said that the bank has adequate liquidity and its capital adequacy is over 16 per cent. He said that no party related to the banks has to worry.

The interim MD & CEO was of the view that the bank had to face certain challenges in the wake of the ongoing Covid 19 pandemic during the current financial year. The situation in the third quarter is quite better and the bank is expected to reach it pre-Covid levels, he added.

He has also assured that the net NPA of the bank is currently at 2.1 per cent and is expected to come down to 2 per cent over the next few months.

He also reiterated the support, the bank has been receiving from the banking regulator RBI.

The information was given by Rajeev Ahuja via a company conference call.