RBL Bank extends co-branded credit cards partnership with Bajaj Finance for 5 years

RBL Bank Limited has extended the partnership of co-branded credit cards with Bajaj Finance Limited for a period of 5 years.   

"RBL Bank Limited today (Monday) announced the signing of the agreement with Bajaj Finance Limited for the extension of the partnership of co-branded credit cards for a period of 5 years to December 2026," said the bank in a filing to the exchanges.  

Earlier on Monday, shares of RBL Bank Limited closed with over 18 per cent loss to Rs 141.75 per share on the BSE.  

Earlier, the shares tanked 20 per cent to 52-week low of Rs 138 apiece on the BSE after the management in an exchange filing said that the Bank's MD and CEO had gone on a leave and the Reserve Bank of India (RBI) had appointed Yogesh K Dayal as an additional director of the bank.  

"The Reserve Bank of India has appointed Yogesh Dayal as an Additional Director on the Board of the Bank for a period of two years till December 23, 2023 or till further orders, whichever is earlier. The Board accepted the request of Vishwavir Ahuja to proceed on medical leave and appointed  Rajeev Ahuja (existing Executive Director of the Bank) as the Interim Managing Director & CEO of the Bank subject to regulatory and other approvals," read a statement from the Bank updated on the BSE.  

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The RBI later clarified after panic spread. "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," said the RBI.   

It further said that there is no need for depositors and other stakeholders to react to the speculative reports. "The bank’s financial health remains stable," it added.  

In another blow, RBL Bank Limited could be excluded from Nifty Bank index. The assumption is based on a research report by Edelweiss. This came to the fore after Edelweiss Alternative Research did a pre-emptive analysis of the Semi-Annual Index Rejig of Nifty Indices, which will officially be announced in the second half of February 2022. As per the research report Bank of Baroda is top contender for replacing RBL Bank from the 12-share Nifty Bank.  

Currently Nifty Bank Index comprises Kotak Bank, ICICI Bank, Punjab National Bank, HDFC Bank, Axis Bank, Federal Bank, State Bank of India, IndusInd Bank, IDFC First Bank, Bandhan Bank, AU Small Finance Bank and RBL Bank.    

RBL Bank is one of India’s leading private sector banks with an expanding presence across the country. It claims to provide service to over 9.97 million customers through a network of 445 branches, 1,435 business correspondent branches (of which 271 banking outlets) and 386 ATMs spread across 28 Indian states and Union Territories.