Mail from RBL Bank MD & CEO (Interim). Assume this is true (I hope it’s true). Key words: “Any other financial parameter.” Image
Now ask: Why was the existing CEO asked by RBI to proceed on leave and why did it appoint Mr. Yogesh Dayal as an Additional Director on the Board of the Bank?
Am trying to reconcile these two seemingly conflicting thoughts. Current CEO says that RBI’s actions have nothing to do with bank’s “financial parameters,” whatever they may be. And RBI makes CEO go on leave and appoints someone on the RBL Bank’s Board.
How could both these thoughts be reconciled?
Disclosure: No position in bank’s stock or derivatives

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More from @Sanjay__Bakshi

27 Dec
There is never just one cockroach in the kitchen. This is factually incorrect. If you take out all but one of the cockroaches from the kitchen, then there will be just one cockroach in the kitchen. 🤣
But the metaphor of "there's never just one cockroach in the kitchen" is valid for business and investment analysis.
Basically, the metaphor is about information asymmetry - there is information about some shit happening in a company - which is not yet public information. And that it will take time for this information to be fully disseminated.
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Whenever shortages appear, the typical manager simply can’t wait to expand capacity and thereby plug the hole through which money is showering upon him." - Buffett
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This I agree with. While 100 Baggers by @chriswmayer is a fabulous book, there is a need for literature on building the conviction to hold.
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