RBI - Statement on the RBL Bank Limited

Last updated: 31 December 2021

Save Share

Quick Summary

The Reserve Bank of India (RBI) has issued a statement addressing recent speculation surrounding RBL Bank. The RBI assures that the bank is well-capitalised and its financial position remains satisfactory. Key financial indicators, including the Capital Adequacy Ratio, Provision Coverage Ratio, and Liquidity Coverage Ratio, are all well above regulatory requirements. The RBI also clarified that the appointment of additional directors is a standard supervisory measure and not a cause for concern.

Reserve Bank of India

Date : Dec 27, 2021

Statement on the RBL Bank Limited

There has been speculation relating to the RBL Bank Ltd. in certain quarters which appears to be arising from recent events surrounding the bank.

The Reserve Bank would like to state that the bank is well capitalised and the financial position of the bank remains satisfactory. As per half yearly audited results as on September 30, 2021, the bank has maintained a comfortable Capital Adequacy Ratio of 16.33 per cent and Provision Coverage Ratio of 76.6 per cent. The Liquidity Coverage Ratio (LCR) of the bank is 153 per cent as on December 24, 2021 as against regulatory requirement of 100 per cent.

Further, it is clarified that appointment of Additional Director/s in private banks is undertaken under Section 36AB of the Banking Regulation Act, 1949 as and when it is felt that the board needs closer support in regulatory / supervisory matters.

As such, there is no need for depositors and other stakeholders to react to the speculative reports. The bank’s financial health remains stable.

Ajit Prasad
Director (Communications)

Press Release: 2021-2022/1422

FAQ :

The RBI has stated that RBL Bank is well-capitalised and its financial position remains satisfactory, addressing recent speculative reports.

Yes, the RBI has confirmed that RBL Bank's financial health remains stable, with a comfortable Capital Adequacy Ratio of 16.33% and a Provision Coverage Ratio of 76.6% as of September 30, 2021.

As of December 24, 2021, RBL Bank's Liquidity Coverage Ratio (LCR) was 153%, which is significantly higher than the regulatory requirement of 100%.

The appointment of Additional Director(s) in private banks is a standard procedure undertaken by the RBI under Section 36AB of the Banking Regulation Act, 1949, when the board requires closer support in regulatory or supervisory matters.

No, the RBI has clarified that there is no need for depositors and other stakeholders to react to speculative reports, as the bank's financial health remains stable.