Lawstreet Journal

RBI Approves 3-Member Committee To Function As Ad-Interim MD & CEO Of Lakshmi Vilas Bank

Lawstreet Journal 28 Sep 2020 8:52pm

Image courtesy: Lawstreet Journal Business RBI Approves 3-Member Committee To Function As Ad-Interim MD & CEO Of Lakshmi Vilas Bank

In the latest annual general meeting (AGM), a section of shareholders of Chennai-based Lakshmi Vilas Bank (LVB) has opposed the re-appointment of seven directors including the Managing Director and CEO S Sundar. Instead, the Reserve Bank of India (RBI) has now approved a three-member committee of directors (CoD) who will lead the bank in the ad-interim.

On Sunday (September 27, 2020), LVB said, "the Reserve Bank of India (RBI) has approved that, the day-to-day affair of the bank will be run by a Committee of Directors (CoD) composed of three independent directors. This CoD will exercise the discretionary powers of MD&CEO in the ad-interim."

These members are:

  1. Meeta Makhan - Chairperson of the Committee of Directors
  2. Shakti Sinha - Member
  3. Satish Kumar Kalra - Member

LVB said, "With Liquidity Coverage Ratio (LCR) of about 262% as on 27th September 2020, against minimum 100 % required by RBI, the deposit-holders, bond-holders, account-holders creditors are well safeguarded."

The outcome of AGM fueled concerns about the governance of the bank in various news items. LVB has clarified on Sunday, saying, Based on voting results of the 93rd Annual General Meeting reappointment of 7 directors was not approved. However, the Bank continues to have a fully functional Board of Directors including 3 independent directors.

"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," said LVB.

Also, LVB ensures that all existing employees of the bank will continue to be in full service as usual,… Continue Reading...

Tagged: Reserve Bank of India  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
New Members view all


C2RMTo Know More

Something Awesome Is In The Work









Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail