Dhanlaxmi Bank’s part-time chairman resigns from board

Dhanlaxmi Bank said in a regulatory filing on Thursday that part-time chairman and independent director of the bank G Subramonia Iyer has submitted his resignation from the board of directors of the bank, owing to certain urgent and emergent personal reasons.

The Kerala-based bank has been in the news recently for all the wrong reasons, including an RBI advisory to ensure transparency in the nomination process of directors and follow best corporate governance practices. Sources in the bank said that Iyer resigned due to health reasons.

The lender currently has just five directors against the maximum strength of 11. It also has two RBI nominees on board as additional directors. It does not have a chartered accountant on board as director after the tenure of the former chartered accountant-director ended on September 30,2020. Some shareholders,including former directors, have also approached the court after the bank board rejected their candidature, moved under Section 160 of the Companies Act. The bank reported a 74% year-on-year decline in its second quarter net profits to `3.66 crore, with bad loans increasing.