Business

LVB’s ex-CFO appointed as interim MD and CEO

He will hold charge till April 30, 2020 or till regular MD& CEO assumes office

The board of Lakshmi Vilas Bank Ltd. (LVB) has co-opted S. Sundar as the additional director of the bank.

He has also been appointed as interim managing director and CEO (wholetime director) of the bank with effect from January 1,2020 to April 30,2020 or till regular MD& CEO assumes charge, whichever is earlier.

Earlier, the bank had announced the resignation of Mr. Sundar as its chief financial officer (CFO).

LVB had been in the news for several reasons such as Economic Offences wing filing an FIR against bank directors, RBI initiating Prompt Corrective Action due to mounting high level of bad debts., imposition of monetary penalty for violating asset classification norms and fraud direction norms among others issues.

Funds-starved LVB was looking at several options to meet its growth ambition. As it was not able to raise money, it welcomed the merger of Indiabulls Housing Finance with it. Though the proposal was cleared by the Competition Commission of India, the RBI rejected it.

Since then, the bank shares had been falling. They fell from a peak of ₹188 on July 2017 to less than ₹20 on the BSE as it was not able to find a finance partner to bail it out. On Monday, the bank shares were quoted at ₹17.25, a fall of 1.43%, on the BSE.

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Printable version | Feb 22, 2020 1:58:48 PM | https://www.thehindu.com/business/lakshmi-vilas-banks-cfo-steps-down/article30446260.ece

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