Private sector lender Lakshmi Vilas Bank has reappointed Parthasarathi Mukherjee as its managing director for two more years.
Mukherjee’s extended term will begin January 25. The bank’s board took the decision on the reappointment on Wednesday.
The reappointed has received the final approval from the Reserve Bank of India (RBI). The lender is going through a critical phase as its growth experienced a decline due to lack of capital. Potential investors in the lender are delaying their decisions on funding as the bank is required to make higher provisions for loan losses.
It is trying to raise Rs 2000 crore from its investors.
The lender is planning to issue up to 15 crore equity shares in a bid to mobilise equity capital and raise capital adequacy ratio, which dropped to 9.67 percent at the end of September from 10.57 percent a year ago.
