RBI appoints Additional Director on Dhanlaxmi Bank board

The Reserve Bank of India (RBI) has appointed one more official from its Bengaluru Regional Office as Additional Director on the board of Dhanlaxmi Bank.

Dhanlaxmi Bank, in a regulatory filing, said: “...it is hereby informed that the RBI...has appointed DK Kashyap, General Manager, Reserve Bank of India, Bengaluru Regional Office, as Additional Director on the board of the bank for a period of two years with effect from September 28to September 27, or till further orders, whichever is earlier.”

With this appointment, the central bank now has two additional directors on the Thrissur-based bank’s board.

In February 2020, G Jagan Mohan, General Manager, RBI, Bengaluru Regional Office, was appointed as Additional Director on the board of the bank for a period of two years with effect from February 27 to February 26or till further orders, whichever is earlier.

Banking sector trade unions have sought the RBI’s intervention as they are of the view that the bank’s new management was trying to change its business model. They alleged that this could land the Bank into difficulties.

“If the Reserve Bank of India does not effectively intervene in the affairs of this bank now, once again it will run into problems,” said CH Venkatachalam, General Secretary, All-India Bank Employees’ Association, in a letter to RBI Governor Shaktikanta Das.

Soumya Datta, General Secretary, All-India Bank Officers’ Confederation, urged the Governor to take appropriate steps so that Dhanlaxmi Bank is allowed to grow in its own space, catering to its own niche segments.

“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. The policies that are being pursued will be inimical for the bank,” he said.