The Reserve Bank of India has set up a 3-member committee of directors to run the day-to-day affairs of Lakshmi Vilas Bank. It said the committee will exercise the discretionary powers of the MD and the CEO in the ad-interim. This decision comes in the wake of the AGM of the bank where shareholders had disapproved 7 of the board members from continuing. The reaction from the shareholders comes in the wake of the bank reporting a negative tier one ratio of -1.83% and its deposits in the June quarter coming down by 27% to Rs 21,161 crore from year-ago levels and 1.3% from a quarter ago. 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. The shareholders also voted against the re-appointment of statutory auditors and branch auditors of the bank. The directors whose appointments were not cleared by shareholders are N Saiprasad, Gorinka Jaganmohan Rao, Raghuraj Gujja, KR Pradeep, BK Manjunath, and YN Lakshminarayana Murthy. The bank is in dire need of capital and has been scrambling to find a buyer. It is in discussions with Clix Capital for a merger. The 3-member committee comprises Meeta Makhan, chairperson, Shakti Sinha, and Satish Kumar Kalra, members.
