LVB's CFO S Sundar takes over interim Managing Director & CEO

Lakshmi Vilas Bank's (LVB's) Chief Financial Officer S Sundar on Wednesday took over as interim Managing Director and Chief Executive Officer of the troubled private sector lender.

He will hold the charge till April 30 or till a regular Managing Director and CEO takes over, the bank said in a statement.

A day earlier, the bank's board of directors co-opted Sundar as Additional Director following approval from the Reserve Bank of India (RBI).

Sundar holds a bachelor's degree in commerce and is a chartered accountant. He has more than 41 years of working experience in Andhra Bank, City Union Bank and LVB.

Sundar has been LVB's Chief Financial Officer from April 27, 2018.

In September, the RBI has initiated prompt corrective action for LVB after the Economic Offences Wing of Delhi Police began probing allegations of cheating and criminal breach of trust against its directors of the board.

The RBI's crackdown was on account high net non-performing assets, insufficient capital to risk-weighted assets ratio (CRAR) and common equity tier one (CET1) and negative return on assets (RoA) for two consecutive years, and high leverage based on on-site inspection under the risk-based supervision carried out for the year ended March 31.

Later, the central bank rejected LVB's merger plan with home financier Indiabulls Housing Finance.

Established in 1926, LVB is one of the oldest private sector banks based out of Tamil Nadu. As on March 31, its net advances stood at Rs 20,103 crore and deposits at Rs 29,279 crore.

.