Thrissur headquartered Dhanlaxmi Bank appears to be witnessing a major boardroom quarrel.

Two independent directors — NRI businessman B Ravindran Pillai and former chief secretary of Kerala K Jayakumar — have submitted their resignations from the board during the course of the last few months.

While Ravindran Pillai did not give any specific reason when he resigned in January this year, except inconvenience due to busy schedule, Jayakumar, who put in his papers late last week (April 28), did so in protest against the bank management’s handling of labour relations.

Jayakumar, who is holding the post of Vice-Chancellor of the Thunchath Ezhuthachan Malayalam University, was on the bank’s board from 2013 till last week. Interestingly, he was re-elected as director for five-year term at the bank’s 88{+t}{+h} annual general meeting (AGM) on September 29 last year.

Jayakumar has protested against the bank’s dismissal of PV Mohanan, erstwhile General Secretary of the bank’s staff union. 

In his resignation letter to the board Chairman, Jayakumar pointed out that he holds no brief for Mohanan and has often been critical of his “unhelpful and irrational attitude”.  At the same time, he feels that the management’s action of dismissal was unfair and unjust and disproportionate to the offences he is said to have committed.

According to Jayakumar, this act would only alienate employees and bring down morale in the organisation, particularly when they are faced with difficult times.

Arguing that it is not too late to be graceful, he asked the Chairman to reconsider the dismissal (Mohanan was due to retire on March 31), and suggested that the period of absence following the strike be treated as leave, and modify his termination order and release his dues as though he had retired on that date.

Jayakumar was, however, sceptical that his advice will be received positively. Citing earlier instances where his advice was disregarded, he came down heavily on the management — especially two officers at the senior level — terming them as having an outdated and “feudal mindset”. He said that they expected directors to be “yes” men.

He added that when directors chose to exercise their right to dissent, they were soon subject to a variety of indignities and withdrawal of elementary courtesies, he said.  

What follows then is that the ‘independent’ director is soon removed from important committees and subtle and not-so-subtle hints are given about how the RBI does not think much of him.

Jayakumar says the happenings in the bank have made him sad and helpless and he did not want to be associated with the bank any more.

When contacted, the bank management told BusinessLine that they are awaiting the board’s approval for giving a clarification with regard to the resignation of directors.

comment COMMENT NOW