The Reserve Bank of India (RBI) has granted an extension of three months to RBL Bank’s interim managing director and CEO Rajeev Ahuja.

The extension will be with effect from March 25, 2022, or till the appointment of a regular MD and CEO, whichever is earlier.

RBI had earlier approved the appointment of Ahuja as interim MD and CEO for a period of three months with effect from December 25, 2021 or till the appointment of a regular MD and CEO.

In December, the RBI had appointed an additional director on the board of the private lender, while the bank's longtime MD and CEO Vishwavir Ahuja stepped aside and proceeded on leave.

Concerned about the possible flight of deposits after the unfolding of dramatic events at RBL Bank, the RBI asserted that the private lender’s financial health is stable and it is well-capitalised. "There is no need for depositors and other stakeholders to react to speculative reports. The bank’s financial health remains stable." the RBI had said in December.