Lakshmi Vilas Bank stock closes 5% higher as shareholders clear three-member panel to manage affairs

Shares of Lakshmi Vilas Bank ended higher today after the lender okayed a three-member committee of directors to manage its affairs. Lakshmi Vilas Bank stock ended 5.21% higher at Rs 20.20 against previous close of Rs 19.20 on BSE. Market capitalisation of the bank stood at Rs 680.16 crore as of today's session. The stock touched an intraday high of Rs 20.8 , rising 8.33%.

The stock touched an intraday low of Rs 18.1, falling 5.73%. The share stands higher than 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages. The stock has risen 17% since the beginning of the year and lost 44.73% in one year. Total 2.42 lakh shares changed hands amounting to turnover of Rs 47.08 lakh on BSE.

Shareholders of the bank voted against the reappointment of seven directors to its board, including Managing Director and Chief Executive Officer (CEO) S Sundar. The shareholders also voted against the resolution for the appointment of branch auditors. The voting was carried out via videoconferencing at the bank's annual general meeting (AGM) on September 25.

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According to the exchange filing, there are 25 shareholders under the category promoter and promoter group. The public institutions (99 per cent votes cast) and public non-institutional shareholders (62 per cent votes cast) voted against the resolutions for appointment of directors and auditors.

The development comes when the bank is undergoing a challenging phase and is in talks for a merger with Clix Capital.

Meanwhile, the bank said its liquidity position remains strong. The lender also said that it has a fully functional board despite the rejection of seven directors by shareholders.

"Certain news items have appeared, expressing concerns about governance of the bank. Based on voting results of the 93rd Annual General Meeting, reappointment of seven directors was not approved. However, the bank continues to have a fully functional Board of Directors including three independent directors," Lakshmi Vilas Bank said in a statement.

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