Lakshmi Vilas Bank Crisis: RBI Appoints Committee of Directors to Run Day-to-Day Affairs

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.