An independent director at Dhanlaxmi Bank has resigned citing multiple issues. Sridhar Kalyanasundaram quit the lender’s board with effect from September 16, with the development bringing forth his sharp difference with other members that included Shivan J.K., its managing director & CEO.
His resignation led to shares of the private sector lender showing volatility as it crashed to a day’s low of Rs 26.30, a fall of over 10 per cent. The counter, however, recovered all of these losses and ended at Rs 30.59, marking a gain of 4.58 per cent or Rs 1.34 over the last close on the BSE.
On Sunday, Dhanlaxmi Bank had shared a copy of his resignation letter to the stock exchanges. Kalayanasundaram alleged in the letter that there were many instances where despite the value of the inputs given, his inputs were “deliberately negated/avoided/overruled by the other members of the board’’.
He maintained that the rights issue of the bank was approved by its board on March 1, 2022, and it had to be held up for over nine months since then due to the various issues within the board.
“I had always been advising my colleagues on the board, and the executive of the bank, that the proposed rights issue-based infusion of Rs 130 crore is not sufficient if the bank was to remain competitive and relevant,” he said.