RBL Bank Reappoints Subramaniakumar As CEO For Three Years

RBL Bank Ltd.'s board of directors reappointed R Subramaniakumar on Monday as the managing director and chief executive officer for another three years.

At a meeting, the board approved re-appointment of Subramaniakumar "pursuant to the recommendations of the nomination and remuneration committee of the board", according to an exchange filing.

Subramaniakumar's reappointment will come into effect from June 23, 2025, and continue till June 22, 2028. His current term was to end on June 22, 2025, the private sector bank said.

A veteran of over 40 years in the banking industry, Subramaniakumar has knowledge across domains of business transformation, banking technology, risk management, innovation, NBFC management, business process re-engineering, among other areas, across organisations.

For the second quarter of the current fiscal, the private sector bank had reported a profit after tax of Rs 220 crore, dragged down by high provisions. Net interest income grew 9.5% year-on-year to Rs 1,620 crore.

The Mumbai-based bank’s gross advances had risen 15% year-on-year to Rs 89,786 crore in the quarter ended September. Total deposits rose 20% to Rs 1.08 lakh crore.

The CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—rose to 33.5% from 32.6% in the year-ago period. A higher CASA ratio indicates a lower cost of funds, since lenders do not usually give any interest on current account deposits and the interest on saving accounts is low.

Motilal Oswal in its report post the earnings stated: "We cut our EPS estimates by 20%/4% for FY25/FY26 and estimate FY26 return on asset/return on equity at 1.0%/10.7%. Reiterate Neutral with a target price of Rs 220 (0.8 times FY26E adjusted book value)."

Shares of RBL Bank closed 0.75% lower at Rs 172.10 apiece on the BSE, compared to a 0.47% decline in the benchmark Sensex.