The Reserve Bank of India has approved that the day-to-day affairs of Lakshmi Vilas Bank will be run by a Committee of Directors (CoD) comprising three independent directors.
The development comes after the shareholders of the bank rejected the reappointment of seven of the directors on the bank's board, including its interim MD and CEO, S. Sundar at its Annual General Meeting on September 25.
In a regulatory filing, the bank said that CoD will exercise the discretionary powers of MD & CEO in the ad-interim which comprises Meeta Makhan, Chairperson of the Committee of Directors, Shakti Sinha, Member and Satish Kumar Kalra, Member.
"On 27th September 2020, the Reserve Bank of India (RBI) has approved that, day-to-day affair of the Bank will be run by a Committee of Directors (CoD) composed of three independent directors," it said.
The three are the only directors out of the proposed 10, who were voted for reappointment by the bank's shareholders.
In its regulatory filing late on Sunday evening, the bank again tried to allay concerns regarding the financial standing of the bank.
"With Liquidity Coverage Ratio (LCR) of about 262 per cent as on 27th September 2020, against the minimum 100 per cent required by RBI, the deposit-holders, bond-holders, account-holders and creditors are well safe guarded," it said.