A quick RBI prescription needed for comatose Lakshmi Vilas Bank2 min read . Updated: 28 Sep 2020, 09:30 PM IST
- Lakshmi Vilas Bank’s shareholders have voted against the reappointment of seven directors
- With the vote-out, the central bank needs to pick up the ball quickly and put in place a revival plan
The festering troubles at Lakshmi Vilas Bank are a reminder that proactive regulatory interference is the best course of action to safeguard depositor interest. The Reserve Bank of India (RBI) has both a success and a failure this year as a lesson in rescuing ailing banks. Punjab and Maharashtra Co-operative (PMC) Bank has been an unfortunate disaster, with its depositors at risk of losing money. On the other hand, Yes Bank’s rescue was certainly swifter and better orchestrated. Both cases involved governance issues, something that bothers Lakshmi Vilas Bank shareholders as well.
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