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The Reserve Bank of India stepped in to address issues at Lakshmi Vilas Bank on Sunday, approving a Committee of Directors (CoD), composed of three independent directors, who would run the day-to-day affairs of the lender.
"This CoD will exercise the discretionary powers of Managing Director and CEO in the ad-interim and is composed of Meeta Makhan - Chairperson of the Committee of Directors, Shakti Sinha - Member and Satish Kumar Kalra - Member," the private sector lender said in a regulatory filing.
With Liquidity Coverage Ratio (LCR) of about 262 per cent as on September 27, 2020, against minimum 100 per cent required by the RBI, the deposit-holders, bond-holders, account-holders and creditors are well safe-guarded, the bank further said.
The move by the RBI came after shareholders of the bank rejected resolutions to appoint seven directors, including the MD and CEO, as well as statutory auditors, at its recent annual general meeting.
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