A large section of shareholders of Lakshmi Vilas Bank (LVB) voted against the reappointment of the bank's Managing Director & CEO, seven directors, and auditors at the Bank's Annual General Meeting (AGM).
Shareholders said that they were unhappy with the way the bank is managed and the deterioration in its finances. The development comes at a time when LVB is on the verge of signing a deal with Clix Capital for a merger and in the process of raising capital.
Bank officials did not comment on the development.
The bank has filed voting results with the BSE and it showed that resolutions which were not passed include the reappointment of S Sundar, executive director - managing director and CEO of the Bank, along with the reappointment of seven independent directors including N Saiprasad, Gorinka Jaganmohan Rao, Raghuraj Gujjar, K R Pradeep, B K Manjunath, and Y N Lakshminarayana.
The shareholders also voted against the re-appointment of statutory auditors (P Chandrasekar LLP, Chartered Accountants) and branch auditors. The appointment of only three directors was cleared by shareholders. This includes Shakti Sinha, Satish Kumar Kalra, and Meeta Makhan. In addition, there are two Reserve Bank of India appointed directors on the board.
LVB's loss before tax provision was at Rs 112.28 crore, for the quarter ended June 30, 2020, as against the loss of Rs 237.25 crore for the quarter ended June 30, 2019. Net NPA 9.64 per cent reduced from 10.04 per cent as on March 31, 2020.
In June, LVB signed an LOI with Clix Group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank. Upon amalgamation, the entire fund of Clix Capital worth Rs 1,900 crore and total assets of around Rs 4,600 crore will get amalgamated into the bank.
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