RBL Bank: Rakesh Jhunjhunwala and RK Damani preparing to buy 10% stake in RBL Bank

RBL Bank Share

Rakesh Jhunjhunwala, one of the country's leading investors, and RK Damani, founder of D-Mart, have approached RBI and requested to buy a 10% stake in RBL Bank.

RBL Bank News

Rakesh Jhunjhunwala, one of the country's leading investors, and RK Damani, founder of D-Mart Requested to purchase a 10a % stake. The news was received on December 26 by CNBC TV18. The news channel says the central bank is considering a request from both investors. There was no immediate reaction from Jhunjhunwala or Damani.

Two important changes took place in the bank on 25th December

On December 25, the RBI appointed Yogesh Dayal, Chief General Manager in charge of the Department of Communications, as Additional Director on the bank's board. On the same day, the bank informed the exchange that Vishwavir Ahuja, a long-time MD, and CEO of RBL Bank, has gone on immediate leave. Later, Executive Director Rajiv Ahuja was promoted to MD and CEO. However, this requires regulatory approval.

"We welcome the appointment of 25-year-old veteran Dayal as a member of their board," RBL said in a regulatory filing on December 25. At the same time, RBL said that the business and financial position of the bank has been steadily improving.

Brokerage houses comment on RBL Bank shares:

Opinion of CLSA on RBL Bank

The outperform rating for RBL Bank shares has been maintained by CLSA. However, the brokerage house has reduced the target from Rs 230 to Rs 200. The brokerage house says the retirement of the additional director is a shocking decision by the RBI. The RBI makes such decisions, especially in times of crisis. This decision will only increase the uncertainty in the short term. Which will be important six months later. In the meantime, the performance of the management will be monitored.

Opinion of ICICI Securities

ICICI Bank downgrades RBL Bank Also advised investors to sell. The stock has been reduced from Rs 180 to Rs 130. The brokerage house says the RBI's decision has added to the uncertainty.

Opinion of INVESTEC on RBL Bank

INVESTEC has advised buying shares of RBL Bank. At the same time, the stock has been given a target price of Rs 295 from the brokerage house. He says the latest developments are negative for investors. Reliance on management has not changed estimates. The rating will be reviewed after the third-quarter results.

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