Money & Banking

AIBOC seeks RBI intervention in Dhanlaxmi Bank

Our Bureau Mumbai | Updated on September 29, 2020 Published on September 29, 2020

Says a few officials from a particular new-gen bank being readied to join the lender

With rising concerns over affairs at Dhanlaxmi Bank, the All-India Bank Officers’ Confederation has now also written to the Reserve Bank of India Governor Shaktikanta Das to intervene in the affairs of the private sector lender.

“Dhanlakshmi Bank Officers’ Organisation, the representative body of the officers’ fraternity in DLB, an affiliate of AIBOC, has already escalated the current disquieting features in the bank with the top management. But it did not yield any positive response,” wrote Soumya Dutta, General Secretary, AIBOC.

New management

Seeking “immediate corrective measures” for detrimental policies initiated by the new management at the lender, the bank officers union has urged the RBI’s nominee director on the board of the bank should get properly apprised of the ground level feedback and impact of the measures taken by the management in the last six months and intervene in the whole matter.

“There is again a renewed focus on the ‘high-end variants’ of CASA accounts, where the minimum balance requirements are huge and the employees are told that opening of normal accounts would not qualify for internal business promotion campaigns,” the AIBOC said, adding that this is contrary to the objective of financial inclusion.

Further, it said that a few officials from a particular New Generation Bank are being readied to join Dhanlaxmi Bank as a first batch in key positions.

“It seems that the intention is to replicate the practices of another institution, which will not at all be suitable for Dhanlaxmi Bank or for that matter any other old-generation bank,”AIBOC said, adding that such policies will be inimical to the bank.

Also read Dhanlaxmi Bank tussle may hit customers, small investors

Sales team

It also noted that the bank is reportedly running on skeletal staff strength and the entry and authorisation rights of the sales team members in the banking software have been suspended.

“The frontline is further reduced because of this move and it creates a negative impression about the performing officers in front of the customers,” it said, adding that the annual general transfer is also not done for 2020.

“We are also informed that the centralisation of advances into a few cluster branches is also announced as another forthcoming measure. Our affiliate informs that the employees and executives of the bank strongly feel that this move, if implemented, could cost dearly to their beloved institution,” AIBOC said.

Earlier, the All-India Bank Employees’ Association (AIBEA) has sought intervention of the Reserve Bank of India in the affairs of Dhanlaxmi Bank as it is worried that the lender may run into problems again.

93-year old Dhanlaxmi Bank is a small sized private bank headquartered in Thrissur, Kerala.

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Published on September 29, 2020
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