A source close to the board said the voting against the MD & CEO was the culmination of a power struggle by majority shareholders. He added that the latest development could prompt RBI to intervene.
According to people familiar with the issues, while there’s no single promoter, a significant stake in the bank is held by a group of local businessmen.
Recently, D K Kashyap, general manager, RBI (Bengaluru Regional Office) was appointed additional director on the board of Dhanlaxmi Bank.
Since June, three board members of the bank had quit. On June 29, Sajeev Krishnan, part-time chairman and independent director, quit citing personal reasons. He had around eight months left in his term. K N Murali, independent director, and G Venkatanarayanan, additional director, too stepped down before the end of their tenure.
Following those exits, the bank had inducted P K Vijayakumar, G Rajagopalan Nair, G Subramonia Iyer and Suseela Menon R as board members.
T Latha had resigned as MD and CEO of Dhanalaxmi Bank in October 2019, within 15 months of taking charge, citing personal reasons. Her appointment was for three years.
Early this week C H Venkatachalam, general secretary, All India Bank Employees Association (AIBEA), had written to the RBI, raising concern over the state of affairs in the bank highighting its high cost to income ratio.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.