Two more board members have quit Kerala-based Dhanlaxmi Bank ahead of their terms. Major differences between some shareholders and them has been cited as a cause, according to multiple sources.
On Tuesday, K.N. Murali, Independent Director and G. Venkatanarayanan, Additional Director resigned from the Board of the Bank with effect from June 29, 2020 citing personal reasons.
Murli joined the bank nearly 1.5 years ago while Venkatanarayanan joined only a few months ago.
According to two people familiar with the development, these resignations are due to differences among board members on policies. “When people begin to act as a faction within the board, it is natural that such events happen,” said one of the persons quoted above.
On Monday, Sajeev Krishnan, part-time Chairman and independent director of Dhanlaxmi Bank, resigned citing personal reasons, the bank said in a communique to exchanges. His resignation will be with effect from June 29.
Krishnan too resigned from the bank ahead of his term on account of differences with the management and some board members. He had joined the Kerala-headquartered bank as part-time Chairman in February 2018 for a period of three years.
“It appears that he didn’t want to continue on account of some differences with the management,” said an industry official on condition of anonymity.
Krishnan has been with the State Bank group since 1977. He handled large credits and projects and internal audit at State Bank of India (SBI) in the Republic of Maldives from 1998 to 1999. In 2004, he was promoted as a Deputy General Manager and deputed to State Bank of Indore to head the integrated treasury and risk management departments.
Last week, Dhanlaxmi Bank reported a 90.5 percent decline in net profit at Rs 2.6 crore for the January-March quarter, hit by higher provisions for bad loans and contingencies. In the year ago quarter, the bank posted a profit of Rs 27.61 crore.
Last year, the Reserve Bank of India (RBI) took the lender out of prompt corrective action (PCA), subject to certain conditions and continuous monitoring, after the regulator noted improvement in the bank’s financials.Dhanlaxmi Bank’s shares ended the day at Rs 14.55, down 2 percent on the BSE.