The board of RBL Bank will no longer have a Reserve Bank of India (RBI) representative, as the two-year term of the central-bank appointed additional director Yogesh Dayal has ended.

This was disclosed by the private sector lender in a regulatory filing to the stock exchanges on Sunday. RBL Bank said in the communication that Dayal’s term as an additional director has ended on December 23.

Dayal, a chief general manager with the RBI, was appointed as an additional director then reportedly over concerns on the way RBL Bank was being run and its practices.

However, to scotch various speculation, the central bank had then issued a rare statement where it said that RBL Bank is well capitalised and the financial position of the bank is satisfactory.

It also pointed out that the lender has maintained sound comfortable capital adequacy ratio and provision coverage ratio.

The RBI also clarified that the appointment of additional director in private banks is undertaken under Section 36AB of the Banking Regulation Act, 1949 as and when it is felt that the board needs closer support in regulatory or supervisory matters.

The appointment of Dayal had also seen Vishwavir Ahuja, its then managing director and CEO proceeding on leave. Subsequently, the bank announced that Rajeev Ahuja would take over as interim managing director and CEO.

It had also then said that its management had the “full support of the RBI”.