“Many of these directors have rotated on-and-off. We believe that a part of the accountability for the bank’s deteriorating performance over the last few years rests with its slate of non-independent directors,” IiAS said in its voting advisory to shareholders.
At the bank’s annual general meeting held Friday, shareholders voted against the appointment of chief executive S Sundar and reappointment of other six directors including N Saiprasad and KR Pradeep who are promoters.
“RBI needs to step in to help the bank to take steps towards recovery,” the report said.
Other non-executive directors who are shown the door are Gorinka Jaganmohan Rao, Raghuraj Gujjar, BK Manjunath and YN Lakshminarayana.
The bank’s Tier I CRAR is a negative 0.88% and gross NPAs are a quarter of the bank’s advances. Auditors have already expressed uncertainty related to the going concern.
The development would put the bank’s proposed merger with the Clix Group in a limbo. Both the entities failed to complete the due diligence within an extended deadline but they maintained that the delay was because of Covid-related disruptions and the process is still on.
LVB has signed a preliminary, non-binding letter of intent (LoI) with Clix Capital Services Private Ltd and Clix Finance India Private Ltd June 15 in relation to the proposed merger.