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RBI Approved 3-Member Committee Headed by Meeta Makhan to Function as ad-interim MD & CEO of LVB

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RBI approves panel of directors headed by Meeta MakhanOn September 27, 2020 The Reserve Bank of India(RBI) approved that the daily affairs of Lakshmi Vilas Bank (LVB)will be run by a Committee of Directors (CoD) composed of 3 independent directors namely, Meeta Makhan, Chairperson of the CoD, Shakti Sinha, Member and Satish Kumar Kalra, Member. The CoD will exercise the discretionary powers of Managing Director(MD) and Chief Executive Officer(CEO) in the ad-interim.

  • Until a new MD is appointed, the existing senior management team and the board of directors will discharge the day-to-day affairs of the bank as usual.


The approval comes after the bank’s shareholders rejected the reappointment of 7 of the directors on the bank’s board, including its interim MD and CEO, S Sundar at its Annual General Meeting on September 25. The Shareholders also rejected the appointment of statutory auditors.

Key Info

i.As on September 27, 2020 LVB has the Liquidity Coverage Ratio (LCR) of about 262% against the minimum requirement of 100% by RBI, which makes the bank’s deposit-holders, bond-holders, account-holders and creditors safe-guarded.

ii.The provision coverage ratio of the bank remains at 72.6%, against the minimum of 70% prescribed by RBI under the prompt corrective action.

Gist about Liquidity Coverage Ratio (LCR)


It is the proportion of high liquid assets set aside by banks to meet short-term obligations. It is calculated by dividing a bank’s High Quality Liquid Assets (HQLAs) by its total net cash flows, over a 30-day stress period.


It promotes short-term resilience of banks to potential liquidity disruptions, by ensuring that they have sufficient HQLAs to survive an acute stress scenario lasting for 30 days. 

General Info

  • It was part of the ‘Basel III: International framework for liquidity risk measurement, standards and monitoring’, an international banking regulation issued in December 2010.
  • RBI had made the LCR requirement mandatory on banks from January 1, 2015 with a transition time where they reached 100% LCR by January 1, 2019.

About Lakshmi Vilas Bank (LVB):
HeadQuarters– Chennai, TamilNadu
Tagline– The changing face of prosperity

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