Close to 70 senior bankers in fray for Lakshmi Vilas Bank top post

The Chennai-headquartered mid-sized private sector bank has been headless since mid-September after the then chief executive Parthasarathi Mukherjee left before the completion of his three-year term. The bank, which has been placed under the prompt corrective action by the monetary authority since August for low capital buffer and higher NPAs coupled and mounting losses, is scheduled to complete the process by November 10.

“We have received as many as 68 applications for the post of chief executive and managing director, signalling higher interest in the nearly 100-year- old private sector bank,” a bank source privy to the development told PTI. Senior executives from leading private sector lenders like ICICI Bank, Kotak Mahindra Bank, Axis Bank, foreign lender Standard Chartered Bank and public sector bank Canara Bank have applied for the post, the source added.

The list also has a few turnaround specialists who have the track-record of making loss-making banks profitable, the source said. The recruitment process, which is currently underway, will get over by November 10 and the new management will take charge by the first week of December if the Reserve Bank approval comes in.

The new chief executive’s focus will be to turn around the bank, which has already initiated a slew of measures for faster recovery, added the source. The bank has already kicked off a fast-paced exercise to improve asset quality by recovering bad loans and to shore up its capital buffer, both have been below the regulatory levels. The ongoing plan is implemented with the involvement of all including the branch heads, added the source.

“Simultaneously, cost-control measures are also in place to boost profitability,” the source said. The bank is also in talks with potential investors to raise funds, including some PE funds.