LVB BROADENS SEARCH FOR NEW MD, CEO; TO SEND NAMES TO RBI

In the midst of completing its merger process with Clix group, private sector Lakshmi Vilas Bank (LVB) has broadened the search base for its new managing director and chief executive and is likely to send an updated list of candidates to RBI in about a monthand-half, a senior bank official said on Tuesday.

The South India-based lender is searching for its next chief from across the industry, private as well as public sector, and has included more candidates now, member of its month-old Committee of Directors (CoD) Shakti Sinha said.

LVB had sent names of three candidates to the Reserve Bank of India (RBI) previously.

At its annual general meeting in late September, the shareholders of the bank had voted out seven board members, including the then MD and CEO S Sundar.

Subsequently, RBI appointed a three-member CoD comprising independent directors Meeta Makhan, Shakti Sinha and Satish Kumar Kalra. “In the first round, we had done interviews of three candidates and sent names to RBI. But the Reserve Bank came back to us and asked whether the new management would like to reconsider the names. So we have started the process again. Now we are broadening our search with more candidates,” Sinha said. Asked how many names the management will send to the RBI, Sinha said it is too early to say how many candidates they will be interviewing. “The process is on, but it will take some time. Our aim is to do it as soon as possible, like say in one-and-half month,” he added.

Sinha noted that appointing a new MD and CEO is a complex process, and right now, the merger with Clix group assumes more significance.

“For us, the merger issue has to be given the priority, as of now. CEO (selection) is a complex process, it is not something you can rush,” he added.

“Normally, the appointment process for MD and CEO takes 6-9 months. We are trying to do it much faster. But right now, the major focus is on the Clix merger, which is being examined and negotiations are going on,” he said. He said finding the right candidates, checking their background and then sending the names to RBI for approval in itself is a long-drawn process.

THE LENDER RESTARTED ITS SEARCH FOR CANDIDATES AFTER ITS MANAGEMENT CHANGED