Shareholders had rejected appointment of seven directors, including the MD and CEO and auditors, at the AGM on September 25.
The Committee of Directors appointed by the RBI will exercise the discretionary powers of the MD and the CEO in the ad-interim.
- News18.com
- Last Updated: September 28, 2020, 10:01 AM IST
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The Reserve Bank of India (RBI) on Monday said day-to-day affairs of Lakshmi Vilas Bank will be run by Committee of Directors who will exercise the discretionary powers of the MD and the CEO in the ad-interim.
At the latest Annual General Meeting of Lakshmi Vilas Bank, last week, shareholders had disapproved seven of the board members from continuing. In its last result, the bank reported a negative tier one ratio of -1.83 percent.
Deposits in the June quarter stood at Rs 21,161 crore, down 27 per cent from year-ago levels and 1.3 per cent from a quarter ago. The news of vacuum at the top after the latest AGM can’t be received well by depositors.
