No end in sight to woes of Dhanlaxmi Bank

No end in sight to woes of Dhanlaxmi Bank
Already hit by the controversies and rising bad loans, there was no end in sight to the woes of Kerala based Dhanlaxmi Bank as it witnessed three more senior-level exits in the past few weeks.

Muralidharan Rajamani, the chief operating officer (CEO) of the bank, resigned last month saying "It was a personal choice and there was no specific reason as such." Rajamani was earlier the CEO of BRICS Online Services and has also worked with ICICI Bank and State Bank of India.

Bipin Kabra, the CFO of the bank since 2009, also resigned last month, said media reports. Another senior level official Manish Kumar, who the president and head of human resources and corporate social responsibility at the bank, also resigned as per media reports.

With these exits, the entire top layer created by Amitabh Chaturvedi, the former chief executive and managing director of Dhanlaxmi Bank, has now vanieshed from the bank. Chaturvedi himself had resigned in February this year following dispute with other board members over the functioning and management of the bank's operations.

The bank has also faced allegations of window dressing its accounts to show inflated profits by All India Bank Officers' Confederation.

Hit by the significant rise in provisions against bad loans, Dhanlaxmi Bank has reported the net loss of Rs 18.6 crore during the Jul-Sep quarter versus net profit of Rs 4.35 crore during the corresponding quarter of previous fiscal.

Read more about: dhanlaxmi bank
Story first published: Wednesday, November 21, 2012, 11:30 [IST]
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