Rakesh Jhunjhunwala and R K Damani to Buy 10% Stake in RBL Bank

Rakesh Jhunjhunwala, Ace investor, and R K Damani, D-Mart’s founder, have approached the Reserve Bank of India to acquire 10% stakes in the Ratnakar Bank Limited (RBL), according to the CNBC TV 18 report.

The reports suggested by the channel that the RBI is in the process of examining the request. 

The news comes a day after the Central Bank made two major decisions ─ appointment of the RBI Chief General Manager Yogesh Dayal as additional director, and the bank’s long term managing director & CEO Vishwavir Ahuja proceeding on leave with immediate effect. Besides this, RBI has also announced changes in online payment rules that will come into effect from January 1. 

RBI, in a regulatory filing on 25 December, acclaimed that it welcomed Mr. Dayal, a veteran central banker with extensive experience of 25 years, as a member of its board. 

In an announcement in respect of Vishwavir Ahuja’s leave, the bank said that his vacant charge would be resumed with immediate effect by Rajeev Ahuja, the incumbent executive director who has been appointed as the interim MD & CEO’.

Regarding the request to the RBI, neither Jhunjhunwala nor Damani has made any announcement. According to the reports, the RBI stocks ended at Rs 172.50, a 3.06% decline on Friday. The leader at present has a market capitalization of Rs. 10, 340 crores. 

In this matter, the new RBL CEO made a statement that the bank does not have any capital requirement for the next eight to twelve months. “We are not going to accelerate much of our investment in technology,” he further added. 

Now let’s see what would be the results. Will RBL accept the request? Or it will be on hold for the next few months.