The shareholders of Lakshmi Vilas Bank have voted against the appointment of seven directors to its board, including that of S. Sundar as the managing director and chief executive officer, the bank said in a regulatory filing.
Besides, shareholders rejected the appointments of N. Saiprasad, K.R. Pradeep and Raghuraj Gujjar as non-executive and non-independent directors, and, those of B.K. Manjunath, Gorinka Jaganmohan Rao and Y.N. Lakshminarayana Murthy as non-executive and independent directors. These appointments were taken up for voting at the bank’s annual general meeting (AGM) on 25 September.
These come at a time when the bank is desperately looking for capital and is in talks with the Clix Group for a merger. The bank’s capital adequacy ratio (CAR), according to Basel III guidelines, contracted to 0.17 % as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of Rs112.28 crore in the June quarter of FY21, compared with a loss of Rs237.25 crore in the same period last year.
The private sector lender said earlier this month that the mutual due diligence for its deal with Clix Group is “substantially complete”. On 30 July, Lakshmi Vilas Bank had said its deal with the Clix Group might be delayed owing to covid-19 and both parties have agreed to extend the exclusivity period till 15 September, 2020.
Earlier, on 15 June, the bank had said it signed preliminary, non-binding letter of intent (LoI) with Clix Capital Services Pvt Ltd and Clix Finance India Pvt Ltd in relation to the proposed amalgamation of Clix Group with the bank.
Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence in exclusive window of 45 days, and will be subject to regulatory and other customary approvals, the bank had said.
