The All-India Bank Officers Confederation (AIBOC) says its stand with respect to the goings-on in Dhanlaxmi Bank may just have been vindicated by Monday's developments.
The Managing Director and Chief Executive of the bank, Mr Amitabh Chaturvedi, had put in his papers reportedly due to differences with members of the board.
The AIBOC expressed its happiness to see that an insider with long experience has been appointed in Mr Chaturvedi's place.
Mr Abraham Shaji John, State Secretary, AIBOC, hoped that the new Managing Director would be able to steer the bank in the right direction. Should he find this difficult, the regulator may seriously explore the scope of merger of the bank with a nationalised peer, Mr Shaji John said. The Reserve Bank must also institute a probe as to why the 15-point ‘monitorable action plan' that it had prescribed for the bank should have failed to deliver.
Among other things, the action plan had demanded that the bank bring down its cost to income ratio, which was found to be unreasonably high.