Lakshmi Vilas Bank
Lakshmi Vilas Bank

In a surprise move, Lakshmi Vilas CEO Parthasarathi Mukherjee quits

  • Parthasarathi Mukherjee quit citing personal reasons, the bank informed the bourses late in the evening
  • Parthasarathi Mukherjee, who had served the larger rival Axis Bank before joining the Tamil Nadu based bank in 2015, was given a two-year extension this January

MUMBAI : Even as the Reserve Bank is yet to take a call on Indiabulls Housing Finance's plans to merge with Lakshmi Vilas Bank, the mid-sized private sector lender on Wednesday announced the resignation of its chief executive Parthasarathi Mukherjee.

Mukherjee quit citing personal reasons, the bank informed the bourses late in the evening.

Mukherjee, who had served the larger rival Axis Bank before joining the Tamil Nadu based bank in 2015, was given a two-year extension this January.

LVB had April announced a merger with the city- headquartered mortgage major, in a deal which is very keenly watched for the outcome.

Indiabulls' association with the realty sector is the reason why the deal is being keenly watched, given the RBI's aversion to allow entities having exposure to the sector into the universal banking space.

The Indiabulls promoters have initiated efforts to completely exit the realty space and also promised to bring down their personal holdings in the merged entity down to regulator-mandated levels.

The deal has received all the necessary approvals, but is stuck with RBI. All along, Indiabulls executives have been sounding confident of getting the go-ahead. PTI AA BEN BEN

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