Dhanlaxmi Bank Independent Director Kalyanasundaram Resigns Over Multiple Issues
Sridhar Kalyanasundaram, an independent director of Dhanlaxmi Bank based in Kerala, tendered his resignation on 16 September, citing a multitude of concerns regarding the bank's operations and internal conflicts within the board. This information was conveyed by the bank to the stock exchanges on 17 September.
In his resignation letter addressed to the Board of directors, Kalyanasundaram raised several issues, including the lack of support from the board, problems related to a rights issue plan, capital enhancement plan, the conduct of the bank's board, integrity concerns, and the absence of consensus on various 'whistle-blower' matters presented to the Directors. He expressed frustration at the deliberate dismissal or avoidance of his inputs by other board members, seemingly in alignment with the MD & CEO's confrontational approach, which has caused previous directors to leave.
Dhanlaxmi Bank currently has 10 Board members, including two additional directors appointed by the Reserve Bank of India (RBI). The bank has faced high-profile resignations and operational challenges in recent years.
Kalyanasundaram also highlighted instances where the bank utilized a one-time settlement (OTS) process, even when it had no impact on the bank's Non-Performing Asset (NPA) status. He pointed to a specific case involving OTS for Jalan Hotels of Kolkata, where he opposed the heavily discounted offer, but it was approved by a majority vote. He noted that despite complaints against some board members, no action had been taken, even for issues such as material suppression of facts.
In conclusion, Kalyanasundaram expressed his hope that the bank would be able to fend off potential predatory acquisitions in the wake of the proposed Rights Issue after his departure from the Board.
The Dhanlaxmi Bank's other Board members include Managing Director and CEO Shivan JK, RBI-appointed Additional Directors DK Kashyap and Jayakumar Yarasi, G Rajagopalan Nair, CK Gopinathan, KN Madhusoodanan, Nirmala Padmanabhan, and Vardhini Kalyanaraman. The bank has been without a chairman since G Subramonia Iyer's resignation in December 2021, and there have been several senior-level departures from the board in recent years. Additionally, the RBI had reportedly rejected the bank's proposal to appoint G Rajagopalan Nair as its part-time chairman in May.
