RBL Bank seeks shareholders' nod to extend term of interim MD and CEO till June 24

Private sector lender RBL Bank on Tuesday said it will seek shareholders' approval for the appointment of interim MD and CEO Rajeev Ahuja till June 24, as the process to appoint a regular head awaits RBI's consent.

Voting through postal ballot will start on April 28 and end on May 27. The results will be declared within two working days from the conclusion of the remote e-voting, the bank said in a regulatory filing.

Submitting a copy of the postal ballot notice, the lender said it seeks shareholders' consent for appointment of Rajeev Ahuja as interim Managing Director and CEO for the period from December 25, 2021 till June 24, 2022 or till the appointment of a regular MD and CEO, whichever is earlier.

On April 20, the lender had informed that its board of directors had accepted recommendations of the Nomination and  Remuneration Committee and finalised the names of candidates for the position of regular MD and CEO and approved making an application to the Reserve Bank of India.

Rajeev Ahuja was appointed as an executive director of the bank for a period of three years from February 21, 2020 to February 20, 2023 with the approval of RBI and shareholders at its Annual General Meeting held in July 2020.

However, in a surprise turn of events, the board in a meeting held on December 25, 2021 sent the then MD and CEO Vishwavir Ahuja on leave and appointed Rajeev as interim MD and CEO.

Rajeev took charge as an interim MD and CEO of RBL Bank for a period of three months with effect from December 25, 2021 or till the appointment of a regular executive.

In a meeting on December 30, 2021, the board initiated steps to identify and evaluate candidates for the position of regular Managing Director and CEO for which a search committee was constituted.

"The board at its meeting held on April 20, 2022 basis the recommendations of the Nomination and Remuneration Committee and pursuant to the provisions of Banking Regulation Act, 1949 and extant RBI guidelines finalized the names of candidates for the position of regular Managing Director & CEO of the bank and approved making of an application to Reserve Bank of India," the filing said.

The bank will soon submit an application to the RBI and complete the process for the appointment of a regular MD and CEO in a timely manner, it added.

Stock of RBL Bank closed at Rs 124.05 apiece on BSE, up by 2.99 per cent from its previous close