LVB fiasco: RBI approves committee of directors

Source :Sify
Author :Finance Desk
Last Updated: Mon, Sep 28th, 2020, 11:50:39hrs

The coup at Lakshmi Vilas Bank during the last week has received an update from the Reserve Bank of India.

On Monday, the RBI is reported as having approved a three-member committee of directors tasked with running the day-to-day functioning of the bank.

The cash-starved bank's shareholders rejected appointment of seven directors including Managing Director, Chief Executive Officer and auditors during a recently organized AGM (annual general meeting).

In a statement posed on Sunday evening, LVB said that the RBI approved three-member committee of directors will exercise discretionary powers of Managing Directors and Chief Executive Officer in the interim.

Shakti Sinha and Satish Kumar Kalra are independent members while the committee chairperson is Meeta Makhan.

LVB statement read, liquidity coverage ratio of about 262 percent as on September 27, against a minimum 100 percent required by the RBI, deposit holders, bond holders, account holders and creditors are well safe-guarded."

It also added that information and developments will be posted in public domain as and when applicable.