Lakshmi Vilas Bank slips 5% after CEO quits

Shares of Lakshmi Vilas Bank (LVB) tanked nearly 5 per cent to Rs 38.75 in Thursday's session after the lender on Wednesday announced the resignation of its chief executive Parthasarathi Mukherjee.

Mukherjee quit citing personal reasons, the bank informed the bourses late in the evening.

LVB had in April announced a merger with the city-headquartered mortgage major Indiabulls Housing Finance, in a deal which is very keenly watched for the outcome.


“I was planning this for quite some time. I have no other plans as yet,” Mukherjee told ET. “My resignation should not hamper the merger process.”

The proposed merger has been cleared by the Competition Commission of India, although RBI is yet to give its approval.

Indiabulls Housing had proposed Sameer Gehlaut as the nonexecutive chairman and Gagan Banga as the chief executive of the merged entity.

The board of LVB, at its meeting on Wednesday, also approved raising Rs 1,500 crore through equity and bonds to shore up the capital adequacy ratio.

Meanwhile, shares of Indiabulls Housing Finance closed 1.68 per cent down at Rs 449.35 on BSE.