What went wrong with RBL?
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So, RBL Bank, or Ratnakar Bank Limited, has faced some challenges in recent years. Here’s a simple breakdown of what went wrong:
Loan Defaults: RBL had issues with some customers not paying back their loans. This increased the bank’s bad debts, which can hurt its finances.
Management Changes: There were changes in the top management, which can create uncertainty. When leaders leave or are replaced, it can affect how well the bank runs.
Regulatory Scrutiny: The Reserve Bank of India (RBI) has kept a close eye on RBL. When a bank is under scrutiny, it might face restrictions, making it harder to operate normally.
Competition: The banking sector is competitive. RBL struggled to keep up with larger banks and fintech companies, which offer attractive services and rates.
Customer Trust: Due to these problems, some customers may have lost trust in RBL. If people worry about a bank’s stability, they might withdraw their money or avoid taking loans.