RBI Must be Blamed: Bank Employees Association on LVB’s Collapse

Why didn’t the RBI see this coming? They have been conducting regular audits, so they should have advised Lakshmi Vilas Bank (LVB) to stay cautious,” said C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA).

The AIBEA alleged that the management of the bank was responsible for hefty loans worth Rs 2,000 crore handed to borrowers such as Religare, Jet Airways, Cox and Kings, Nirav Modi group, Coffee Day Enterprises, Reliance Housing Finance, etc.

The cash-strapped LVB is the latest in line of a series of banks such as Punjab and Maharashtra Cooperative Bank (PMC) and Yes Bank, to go under.