Reserve Bank of India (RBI) has cleared the name of Shivan JK as the new managing director and CEO of Kerala-based private sector lender Dhanlaxmi Bank after the shareholders approved the appointment, voting through postal ballot early this week.
“It is hereby informed that the proposal for the appointment of Shri. Shivan J K as Managing Director & CEO of the Bank for a period of three years w.e.f the date of taking charge has been approved by Reserve Bank of India,” the bank said in an exchange communication.
This is probably the first instance where a private bank CEO appointment is cleared by the RBI after the shareholders approve the proposal. In normal cases, the RBI first clears the name and later the shareholders approve the appointment.
“Further, the Board of Directors of the Bank, at its meeting held on January 28, 2021, pursuant to the aforementioned RBI approval, has appointed Shri. Shivan J K as Managing Director & CEO of the Bank for a period of three years from the date of taking charge,” the bank said.
Shivan, who has over three and half decades of experience in banking, has handled various areas in commercial banking at SBI. He has headed corporate banking, international banking, forex operations and was also involved in retail advances and agriculture credit in SBI.
Shivan retired as Chief General Manager of Stressed Assets Resolution Group of SBI. He was retail branch head for six years in Kerala in rural and urban centres of SBI. He has also handled sectoral teams handling stressed accounts in the infrastructure and commercial real estate and then in the Airlines, Telecom, Trading, Gem & Jewellery, Food Processing, and edible oil processing.
Dhanlaxmi Bank shareholders had ousted former CEO Sunil Gurbaxani in the bank's Annual General Meeting (AGM) in September. Following this, the RBI appointed a committee of creditors to look after the daily operations of the bank. At the September 30 AGM, shareholders had ousted Gurbaxani, the RBI-appointed MD & CEO with over 90 percent votes polled, turning against his appointment.Shares of Dhanlaxmi Bank closed at Rs 13.10 apiece on Thursday, down 1.87 per cent from the previous close.