RBI Bank Falls Over 5% After MD Sells Stake Worth Rs. 38 Crore

Shares in private sector lender fell as much as 5.7% in intra-day deal on the BSE to Rs. 198.45 per share after the bank's MD and CEO sold close to 19 lakh shares of the lender. In a BSE filing on August 28, the bank said, "Vishwavir Ahuja, Managing Director & CEO of the bank, has sold 18,92,900 shares of RBL Bank on August 27 and 28, 2020, for approximately Rs 38.52 crore".

RBI Bank Falls Over 5% After MD Sells Stake Worth Rs. 38 Crore

The sale was driven primarily with the need to extinguish personal debt obligations and related servicing burden, undertaken over the last few years, mainly to exercise and purchase vested ESOPs as well as to take care of some pressing family commitments, the statement stated.

Ahuja sold shares worth Rs. 38.52 crore, which account for nearly 18 percent of his/ his family's overall stake in the bank. Further as per the filing with the exchange he continues to hold 1.6% holding or 80.1 lakh shares of RBL Bank post the sale of these shares.
The lender is also the worst performer on the Nifty Bank index which was last down by 1.72% after gaining the most over 2.5% in early morning trade.

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