The cost of shareholder activism : LVB shareholders vote out the management /

Lakshmi Vilas Bank (LVB) was established as a private sector bank in 1926 in Tamil Nadu. It was set up to serve the financial needs of the people working in small and medium-sized enterprises (SMEs). LVB got into trouble after shifting focus from funding SMEs to funding big corporates. Initially, it...

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Bibliographic Details
Main Authors: Varkkey, Biju (Author), Shah, Virangi (Author)
Format: eBook
Language:English
Published: London : Indian Institute of Management, Ahmedabad, 2024.
Series:SAGE Business cases.
Subjects:
Online Access:Connect to the full text of this electronic book
Description
Summary:Lakshmi Vilas Bank (LVB) was established as a private sector bank in 1926 in Tamil Nadu. It was set up to serve the financial needs of the people working in small and medium-sized enterprises (SMEs). LVB got into trouble after shifting focus from funding SMEs to funding big corporates. Initially, it made profits; however, corporates' default hit the bank. LVB also made efforts to merge with various entities, but to no avail. Meanwhile, Institutional Investor Advisory Services published an article capturing LVB's poor corporate governance. The article triggered shareholder activism, thereby creating a leadership vacuum. The case highlights the impact of shareholders activism on LVB's management.
Physical Description:1 online resource : illustrations.
ISBN:9781071945032
1071945033