LVB director quits two days after appointment
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.