Committee of directors to manage Dhanlaxmi Bank

Reported by: |Updated: October 5, 2020

The Reserve Bank of India has approved a 3-member committee of directors to manage the daily affairs of Dhanlaxmi Bank after its MD and CEO was voted out by shareholders at its AGM. The committee will exercise powers of the MD & CEO, until a new person takes charge. The interim arrangement will be in place for 4 months within which the bank will complete the process of identification and appointment of a new MD & CEO. The committee of directors comprise G. Subramonia Iyer as Chairman and G. Rajagopalan Nair and P.K Vijayakumar as members. At the AGM of the bank, 90.49% shareholders voted against the appointment of Sunil Gurbaxani as the MD & CEO. The RBI had earlier approved Gurbaxani’s appointment in February 2020. A considerable number of shareholders has been at variance with the decisions of the current management of the bank, especially its proposal for large scale expansion in north Indian cities, and hire several new sales and senior executives. They were also said to be opposed the management’s plan to bring in investment from a private bank in Mumbai, thereby giving it a controlling stake in the bank.

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