Finance

Lakshmi Vilas Bank CEO resigns ahead of proposed merger with Indiabulls Housing Finance

Updated : August 29, 2019 01:31 PM IST

Parthasarathi Mukherjee cited "personal reasons" for resignation

Indiabulls Housing Finance has proposed Gagan Banga's name for MD & CEO of the merged entity

Parthasarathi Mukherjee has resigned as managing director and chief executive officer of Lakshmi Vilas Bank, citing personal reasons, ahead of a proposed merger with Indiabulls Housing Finance, catching investors by surprise and casting a shadow over the deal.

The bank announced the exit of Mukherjee, a veteran banker who previously had stints in UTI Bank and Axis Bank, said in a regulatory filing on Wednesday.

Mukherjee's resignation comes ahead of the bank's proposed merger with Indiabulls Housing Finance.

Indiabulls Housing Finance had earlier said it expects RBI to take a decision on its merger plan by October, and proposed Sameer Gehlaut as the non-executive Chairman and Gagan Banga as the MD and CEO of the amalgamated entity.

The merger proposal was cleared by Competition Commission of India in June this year, and is pending RBI nod, among other approvals.

Mukherjee joined the bank on January 25, 2016 for three years and had brought positive changes initially before the piling up bad loans hit profitability.