LVB says RBI approves committee of directors to run day-to-day affairs

Lakshmi Vilas Bank (LVB) has said that the Reserve Bank of India (RBI) has approved a three-member Committee of Directors (CoD) to run the day-to-day affair of the private sector lender.

This CoD will exercise the discretionary powers of MD&CEO in the ad-interim. The committee chairperson is Meeta Makhan, with Shakti Sinha and Satish Kumar Kalra as members. All three are independent directors.

With the Liquidity Coverage Ratio (LCR) of about 262 percent as on September 27, 2020, against a minimum 100  percent required by RBI, deposit-holders, bond-holders, account-holders and creditors are well safe-guarded.

The bank will continue to share information on the developments in the public domain as and when they materialise, and as required by applicable law, it said.

Earlier, the shareholders had rejected the appointment of seven directors, including the MD and CEO and auditors, at the annual general meeting on September 25.

The shareholders also voted against the re-appointment of statutory auditors (P Chandrasekar LLP, Chartered Accountants) and branch auditors. The branch auditor is appointed in consultation with the statutory auditor.

The directors whose appointments were not cleared by shareholders include N Saiprasad, Gorinka Jaganmohan Rao, Raghuraj Gujja, KR Pradeep, BK Manjunath and YN Lakshminarayana Murthy.

According to people familiar with the development, shareholders rejected the appointments a time when the bank is facing a major financial crisis due to deterioration of asset quality and lack of capital.