(Bloomberg) — Shares of RBL Bank Ltd. plunged 10% as a decision by India’s central bank to appoint an additional director to the private lender’s board raised investor concerns about its near-term outlook.
The stock tumbled to its lowest level since June 2020. Yogesh Dayal, a career central banker, was appointed by the Reserve Bank of India for a period of two years from Dec. 24. The move came as RBL’s Chief Executive Officer Vishwavir Ahuja went on medical leave.
The appointment will be taken adversely by investors, keeping the stock under pressure, while the management changes add to uncertainty, Anand Dama, an analyst at Emkay Global Financial Services Ltd., wrote in a note on Saturday.
READ: RBL Bank Management Has Full RBI Support, Interim Chief Says
NOTE: Watch India’s Private Bank Stocks After RBI’s Appointment at RBL
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