Lakshmi Vilas Bank Crisis: Bank Says Has Fully Functional Board

Following the ouster of as many as 7 directors by the shareholders, and concerns on governance at Lakshmi Vilas Bank, it has stated that the bank continues to have a fully functional board of directors.

"Certain news items have appeared, expressing concerns about governance of the Bank. Based on voting results of the 93rd Annual General Meeting reappointment of 7 directors were not approved.

However, the Bank continues to have a fully functional Board of Directors including 3 independent directors. The Bank's liquidity poisiton as on date is comfortable, with Liquidity Coverage Ratio (LCR) is in excess of 250% about 262% against minimum 100 % required by RBI. The Bank continues to enforce cost reduction measures both of direct and indirect costs. The Bank's provision coverage ratio remains healthy at 72.6%, against the minimum of 70.0% prescribed under PCA.

Further, besides existing business, the Bank will continue its focus on capital-light loans. All the existing employees of Bank will continue to be in full service as usual, and remain ever committed as usual to serve customers," the bank has said in a statement to the exchanges.

The shares of Lakshmi Vilas Bank which dived as much as 4 per cent on Monday, managed to trade steady, and was up 1 per cent in trade.