Dhanlaxmi Bank to be run by committee of directors: RBI approves order

RBI

The Reserve Bank of India (RBI) has approved the appointment of a three-member interim committee of directors, headed by G Subramonia Iyer, to run the private sector bank after the shareholders voted out Sunil Gurbaxani, Managing Director and Chief Executive Officer.

Last week, the shareholders discarded the resolution for appointment of Gurbaxani as MD and CEO at the 93rd Annual General Meeting of the lender organised on September 30.

“Consequent to this, please note that RBI has, as requested by the Board of Directors, approved an interim arrangement for formation of a Committee of Directors to exercise the powers of managing director & CEO till such time a new MD & CEO takes charge,” said Dhanlaxmi Bank said in a regulatory filing.

The committee of directors (CoD) will be formed with Iyer as chairman and G Rajagopalan Nair and P K Vijayakumar as its members, said the communiqué.

“As advised by RBI, the interim arrangement will not continue beyond four months within which the bank will complete the process of identification and appointment of a new MD & CEO,” it added.

Gurbaxani holds 35 years of experience in the banking sector and he assumed office in February this year.

On Tuesday, RBI named D K Kashyap, general manager at the central bank’s Bengaluru regional office as an additional director on Dhanlaxmi Bank’s board till September 27, 2022.

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