Reserve Bank Approves Lakshmi Vilas Bank CEO’s Extension
- The Reserve Bank of India has approved the extension of tenure for Lakshmi Vilas Bank’s MD and CEO, Subramanian Sundar by six months.
- This is the second extension given to Mr. Sundar who was the MD & CEO (interim) from January 1, 2020 to April 30.
- His tenure was further extended to May 31, the bank said in a filing. On Monday, the board extended his tenure till November 30 or till the appointment of the new CEO, whichever is earlier.
- Sundar holds a bachelor’s degree in commerce and is a chartered accountant. He has more than 41 years of working experience in Andhra Bank, City Union Bank and LVB.
- Sundar has been LVB’s Chief Financial Officer from April 27, 2018.
- In September, the RBI has initiated prompt corrective action for LVB after the Economic Offences Wing of Delhi Police began probing allegations of cheating and criminal breach of trust against its directors of the board.
- The RBI’s crackdown was on account high net non-performing assets, insufficient capital to risk-weighted assets ratio (CRAR) and common equity tier one (CET1) and negative return on assets (RoA) for two consecutive years, and high leverage based on on-site inspection under the risk-based supervision carried out for the year ended March 31.
- Later, the central bank rejected LVB’s merger plan with home financier Indiabulls Housing Finance.
About Lakshmi Vilas Bank –
- Lakshmi Vilas Bank Limited was founded in 1926 by a group of seven businessmen of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar. Their objective was to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture
- Founded – 1926
- Headquarter– Chennai
- MD & CEO – Parthasarathi Mukherjee