Amid Lakshmi Vilas Bank shareholders who voted against the appointment of CEO and directors at the General Shareholders’ Meeting, the bank sought to reassure depositors, saying that “the bank’s liquidity position to date is comfortable.”
The rejection of the appointment of top management comes at a time when the bank is desperately seeking capital and is in talks with Clix Group for a merger.
He said the bank continues to have a fully functional board that includes three independent directors and that until a new CEO is appointed, the existing senior management team and board will take care of day-to-day business.
The bank’s liquidity position to date is comfortable, with a liquidity coverage ratio (LCR) higher than 250%. The Bank continues to apply both direct and indirect cost reduction measures, the bank said in the regulatory document.
Its provision coverage ratio remains healthy at 72.6%, against the minimum of 70.0% prescribed by PCA. In addition, in addition to existing businesses, the Bank will continue to focus on low-capital loans.
All existing bank employees will continue to be in full service as usual and remain committed as always to serving customers.
Shareholders have approved the limit increase through FPO, rights issue, QIP or available routes.
“The Bank will continue the process of considering and evaluating the proposed merger of ‘Grupo Clix’ with the bank and, as previously reported on September 15, 2020, mutual due diligence is substantially complete,” he added.
Additionally, to strengthen the bank’s capital, the shareholders approved a resolution authorizing the Bank to carry out capital raises such as FPO, Issuance of Rights, QIP or other available avenues to raise capital.
Earlier today, shareholders voted against the appointment of seven directors to its board, including S. Sundar as managing director and chief executive officer, the bank said in a regulatory document.
Furthermore, the shareholders rejected the appointments of N. Saiprasad, KR Pradeep and Raghuraj Gujjar as non-executive and non-independent directors, and those of BK Manjunath, Gorinka Jaganmohan Rao and YN Lakshminarayana Murthy as non-executive and independent directors. These appointments were put to a vote at the bank’s annual general meeting (AGM) on September 25.
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