21 C
California
Tuesday, October 20, 2020

Shareholders vote out Dhanlaxmi Bank CEO – Times of India

MUMBAI: Shareholders of Thrissur-based Dhanlaxmi Bank have voted out the Reserve Bank of India (RBI)-approved MD & CEO Sunil Gurbaxani at its annual general meeting on Wednesday. A filing by the bank said that 90.5% of the shareholders voted against the appointment.
The shareholders’ action will pose a fresh dilemma for the central bank, which is still dealing with a leadership crisis at Lakshmi Vilas Bank where the RBI-approved CEO S Sundar was voted out last week.
In the meeting, Dhanlaxmi Bank shareholders approved the appointment of C K Gopinathan, G Subramonia Iyer, Suseela Menon, G Rajagopalan Nair, and P K Vijayakumar as directors. They also cleared the appointment of an auditor and an increase in the authorised capital of the bank. However, only 9.5% of shareholders voted in favour of the CEO.
The shareholders — who have a widely distributed holding, include foreign portfolio investors (11%), individuals and trusts — had clashed with the management over plans to diversify. Dhanlaxmi Bank also has a strong union presence, which has opposed the management plans to ‘modernise’ and to open more branches in the northern states. On Tuesday, the bank had informed the stock exchanges that the RBI had appointed its general manager at Bengaluru D K Kashyap as an additional director.
The largest individual shareholders are B Ravindran Pillai, a Middle East-based billionaire who heads the RP Group and has a 10% stake in the bank. Director C K Gopinathan is the second-largest individual shareholder with a 7.5% shareholding. UAE billionaire, Lulu Group MD M A Yusuff Ali, and DHFL Group’s Kapil Wadhawan both hold 5% each.
Dhanlaxmi Bank’s board appointed Gurbaxani as the MD & CEO for three years effective from February 27, 2020 after receiving a clearance from the RBI. Gurbaxani replaced T Latha, who resigned on October 30 last year due to personal reasons.
The 93-year-old bank has a long-standing relationship with a large number of temple trusts in southern India, which has given it a strong deposit base. Nearly 60% of the bank’s branches are in Kerala with a major presence in Tamil Nadu. The bank was earlier under the RBI’s prompt corrective action framework, but was removed in February 2019.

Speak Your Mind

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get in Touch

211FansLike
34FollowersFollow
41FollowersFollow

Recommend for You

Walmart divides Black Friday deals into 3 separate events that kick off online

An employee works on a display ahead of Black Friday at a Walmart store in Chicago, November 20, 2018.Kamil Krzaczynski | ReutersFor shoppers who...

Trump Promotes Baseless, QAnon-Endorsed Conspiracy Theory Alleging Obama Staged Bin Laden’s Killing

Topline President Trump promoted a baseless conspiracy theory on Tuesday alleging the Obama administration covered up a plot to stage Osama Bin Laden’s death,...

‘This is insanity’: Doctors slam Trump’s drive to greet supporters outside Walter Reed hospital

US President Trump waves from the back of a car outside of Walter Reed Medical Center in Bethesda, Maryland on Ocotber 4, 2020.Alex Edelman...

Democrats Attack Trump On Twitter Following Report He Paid $750 In Taxes

Topline A bombshell report in the New York Times detailing President Trump's tax information dating back two decades led to a social media onslaught...

‘Out of control’: European leaders scramble to control the second wave, with a state of emergency and lockdowns

A nurse gets ready to enter a room to take care of a patient infected with Covid-19 at the intensive care unit of the...

Related Articles

US stocks tumble as Trump scotches stimulus talks –...

NEW YORK: Wall Street stocks tumbled into the red as President Donald Trump pulled...

The National Guard’s Fire-Mapping Drones Get an AI Upgrade

More than 3 million acres of California have burned this year, and 18,000 firefighters...

How NextEra Overtook ExxonMobil As The Largest U.S. Energy...

A storage tank is seen at the ExxonMobil oil...

This Rare Irish Whiskey From The 1930s Is Now...

George Roe 16 Year Old Irish Whiskey Is Expected...