RBI appoints 3 Member team to run Lakshmi Vilas Bank

TIL Desk/Business/New Delhi/ The Reserve Bank of India (RBI) has approved a three-member committee of directors to run the day-to-day functioning of cash-strapped Lakshmi Vilas Bank.

The development comes a few days after its shareholders rejected the appointment of seven directors, including the managing director, chief executive officer and auditors at the annual general meeting.

The shareholders rejected the appointments a time when the private sector lender is facing a major financial crisis due to deterioration of asset quality and lack of capital.

LVB is in dire need of capital and has been scrambling to find a buyer. The private lender is in talks with Clix Capital for a merger to secure the much-needed capital.

In a statement issued late on Sunday, LVB said the RBI-approved three-member committee of directors will exercise the discretionary powers of managing director and chief executive officer in the ad-interim.