Shareholders of Dhanlaxmi Bank have voted out its Managing Director and Chief Executive Officer Sunil Gurbaxani, seven months after he took the charge of the lender.
The development comes a day after the banking regulator Reserve Bank of India appointed its General Manager D K Kashyap to the board of the lender for two years.
The decision to approve the appointment of Sunil Gurbaxani as Managing Director & CEO of the lender was reported by 90 percent of shareholders at the Annual General Meeting (AGM), said the Kerala-based bank in a regulatory filing.
Gurbaxani assumed office as CEO of the lender in February this year. He is a veteran banker and holds over 35 years of experience with lenders namely the State Bank of India Group and Axis Bank.
However, the shareholders okayed appointment of four independent directors — P K Vijayakumar, G Rajagopalan Nair, Suseela Menon R and G Subramonia Iyer. Re-appointment of Gopinathan C K as a director on the bank”s board was also approved.
On Tuesday, RBI named D K Kashyap, General Manager at the apex bank’s Bengaluru Regional Office as an Additional Director on Dhanlaxmi Bank’s board till September 27, 2022.
RBI had put Dhanlaxmi Bank under the Prompt Corrective Action (PCA) framework in November 2015 due to its deteriorating financial health. The lender came out of PCA, wherein various restrictions were imposed, only last year and since then it has been making profits.
Bank unions AIBOC and AIBEA had raised concerns over few ongoing developments at Dhanlaxmi Bank and also requested for immediate corrective measures by RBI.