LVB di­rec­tor quits two days after ap­point­ment

The Times of India (New Delhi edition) - - Times Business - [email protected] times­group.com

Chen­nai: Lak­shmi Vi­las Bank (LVB) di­rec­tor Supriya Prakash Sen has re­signed from the board of the bank, just two days after she was reap­pointed to the board, cit­ing ‘per­sonal pri­or­i­ties’ on Wed­nes­day. This is the sec­ond exit, in two months, after LVB’s CEO Parthasara­thi Mukher­jee also quit, cit­ing per­sonal rea­sons in Au­gust.

While the res­ig­na­tion comes amid an FIR filed by the Eco­nomic Of­fences Wing of Delhi Po­lice based on a com­plaint from its de­pos­i­tor Reli­gare Fin­vest against the bank’s di­rec­tor and board of di­rec­tors for of­fences of cheat­ing, crim­i­nal breach of trust by banker, crim­i­nal mis­ap­pro­pri­a­tion and crim­i­nal con­spir­acy on Septem­ber 23, Sen main­tained it was com­pletely per­sonal.

On Septem­ber 28, RBI placed LVB un­der prompt cor­rec­tive ac­tion on ac­count of its high level of bad debt, in­suf­fi­cient cap­i­tal neg­a­tive re­turn on as­sets for two con­sec­u­tive years and high lever­age, and based on on-site in­spec­tion un­der the risk-based su­per­vi­sion car­ried out for the year ended March 31, 2019.

Trou­ble in LVB started when it slipped into loss of 585 crore in March, 2018, which ex­tended to a loss of 894 crore in March, 2019. In April, 2019, the bank pro­posed a merger with NBFC In­di­a­b­ulls Hous­ing Fi­nance and got ap­proval from Com­pe­ti­tion Com­mis­sion of In­dia in June end. The two par­ties are wait­ing for RBI’s nod on this merger.

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