India's Dhanlaxmi Bank shares fall after independent director quits (updated)

Dhanlaxmi Bank

18/09/2023 06:08

(Recasts headline; adds details)
       BENGALURU, Sept 18 (Reuters) - Shares of private lender
Dhanlaxmi Bank  DNBK.NS  dropped as much as 9% on Monday before
recovering partially, after Sridhar Kalyanasundaram, an
independent director, quit over the weekend, citing differences
with the board on matters including the bank's rights issue and
capital position.
    The bank's shares were down 3.25% at 28.20 rupees as of
10.20 a.m. IST.
    Kalyanasundaram was appointed as independent director of the
Thrissur, Kerala-headquartered bank in December 2022. The bank
is currently led by Chief Executive Officer Shivan J.K., who did
not immediately respond to a Reuters request for comment.
        In a letter dated Sept.16, sent to the exchanges on
Sunday, Kalyanasundaram said he raised questions over a planned
rights issue of the bank, which remain unresolved. 
    Kalyanasundaram also alleged that he was threatened of being
"sacked from the bank" for raising these concerns. 
        He further said certain concerns - including one over a
recent one-time settlement with a corporate debtor - raised by
him regarding "irregularities" in the way the bank's board and
committee meetings were being held were "brushed away." 
  
        Kalyanasundaram wrote that the bank had regularly
dismissed whistle-blower complaints even though some contained
material allegations.
  
        Dhanlaxmi Bank, with assets of just over 151 billion
rupees as of March 2023, has seen an unprecedented executive
churn over the years and is under heightened scrutiny by the
Reserve Bank of India which has placed two directors on its
board.
  
            
    

 (Reporting by Chris Thomas in Bengaluru and Ira Dugal in
Mumbai; Editing by Dhanya Ann Thoppil and Nivedita
Bhattacharjee)
 ((chris.thomas@thomsonreuters.com;))