LVB reassures investors as shareholders reject management team
29 September 2020
Lakshmi Vilas Bank (LVB) has sought to ally investor fears after shareholders voted out most of the proposed management team, including the CEO, at the lender’s annual general meeting, in what is seen as a lack of faith in the proposed team.
In a statement issued on Sunday evening, the bank sought to reassure depositors that it has adequate liquidity and that affairs of the lender would be managed in consultation with the board.
The statement came after shareholders of the bank rejected the appointment of seven directors, including the chief executive officer, at the lender’s annual general meeting held on 25 September.
“The bank's liquidity poisiton as on date is comfortable, with liquidity coverage ratio (LCR) in excess of 250 per cent about 262 per cent against minimum 100 per cent required by RBI,” the lender said in a press release.
The bank's provision coverage ratio also remains healthy at 72.6 per cent, against the minimum of 70 per cent prescribed by the Reserve Bank of India under the prompt corrective action.
Till a new managing director is appointed, the existing senior management team along with the board of directors will discharge the day-to-day affairs of the bank as usual. We will be making further announcements on the interim management at the soonest.
On Saturday night, the bank disclosed that the appointments of S Sundar (MD & CEO), N Saiprasad (Non-executive, non-independent), Gorinka Jaganmohan Rao (Non-executive, independent), Raghuraj Gujjar (Non-executive, non-independent), KR Pradeep (Non-executive, non-independent), BK Manjunath (Non executive, independent) and YV Lakshminarayana Murthy (Non executive, independent) have not been passed by shareholders.
The appointment of only three directors - Shakti Sinha, Satish Kumar Kalra and Meeta Makhan - was cleared by shareholders. In addition, there are two Reserve Bank of India appointed directors on the board.