The non-independent director of Lakshmi Vilas Bank resigns from the board
New Delhi, November 1 () Private sector lender Lakshmi Vilas Bank said Friday that non-independent non-executive director Anuradha Pradeep resigned from the board.
Anuradha Pradeep (non-executive and non-independent director) resigned from the bank's management on November 1, 2019, the bank said in a regulatory document.
According to a letter attached to the presentation, Pradeep said: I submit my resignation to the position of director of Lakshmi Vilas Bank and request that it be accepted as effective as of today (Friday).
Earlier on October 2, the bank had reported the resignation of its Independent Director Supriya Prakash Sen, citing personal reasons.
Sen's resignation came days after the RBI initiated prompt corrective action (PCA) against the private sector lender on September 28. In particular, the central bank rejected the merger proposal between Indiabulls Housing Finance and Lakshmi Vilas Bank on October 9.
In addition, there was speculation about the fate of the proposed merger announced in April this year, as the RBI had imposed restrictions on the bank due to its weak financial position.
Lakshmi Vilas Bank was placed under the RBI's PCA framework due to the high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years.
The merger proposal received all necessary approvals, but the approval of the Reserve Bank of India (RBI) banking regulator was pending since May. Both Indiabulls Group and Lakshmi Vilas Bank are under the scanner, facing complaints against alleged cases of deception and embezzlement. KPM HRS