Lakshmi Vilas Bank Non-Independent Director Resigns From Board
Lakshmi Vilas Bank Mulund branch in Mulund. (Source: BloombergQuint)

Lakshmi Vilas Bank Non-Independent Director Resigns From Board

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Private sector lender The Lakshmi Vilas Bank Ltd. on Friday said non-executive non-independent director Anuradha Pradeep has resigned from the board.

“Anuradha Pradeep (non-executive and non-independent director) has resigned from the directorship of the bank on Nov. 1, 2019,” the bank said in a regulatory filing.

According to a letter attached with the filing, Pradeep said, “I hereby tender my resignation from the post of director of Lakshmi Vilas Bank and request the same may be accepted as effective from end of the day today (Friday).”

Earlier on Oct. 2, the bank had informed about resignation of its Independent Director Supriya Prakash Sen, citing personal reasons.

The resignation of Sen had come days after the RBI initiated a prompt corrective action against the private sector lender on Sept. 28. Notably, the central bank on Oct. 9 rejected the proposal of merger between Indiabulls Housing Finance and Lakshmi Vilas Bank.

Also, there were speculations on the fate of the proposed merger announced in April this year, as the RBI had put restrictions on the bank due to its weak financial position.

Lakshmi Vilas Bank was placed under the RBI’s PCA framework due to high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years.

The merger proposal had received all necessary approvals but the nod from banking regulator Reserve Bank of India was pending since May.

Both Indiabulls Group and Lakshmi Vilas Bank are under the scanner, facing complaints against them on alleged cases of cheating and misappropriation of funds.

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