Dhanlaxmi Bank zooms 12% on robust quarterly update

At 12.54 pm, Dhanlaxmi Bank was trading 11.5 percent higher at Rs 32.50 on the National Stock Exchange.

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The uptick in the stock price was also accompanied by strong volumes, as one crore shares had changed hands by early afternoon, significantly higher than the one-week daily traded average of 22 lakh shares.

The stock has also been a multibagger, delivering nearly 170 percent returns in the past year as it rode on the bullish wave seen across the PSU bank sector.

Regardless, the lender was caught in a controversy in September when independent director Sridhar Kalyanasundaram stepped down from his position. He cited concerns regarding the unethical conduct of the bank's operations and internal factionalism among the board members, among other issues.

Kalyanasundaram also pointed out that the bank's board had received numerous complaints, both anonymous and signed but had consistently chosen to dismiss them as "the habit in this bank over time".

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