Dhanlaxmi Bank CEO resigns, stock closes 2% lower

The problems at Dhanlaxmi Bank just seem to pile up: even as it struggles with major liquidity problems and unrest from a section of its union, reports suggest that the bank’s CEO and managing director, Amitabh Chaturvedi, has put in his papers.

According to media reports, the bank’s board will meet at 4 pm today to consider Chaturvedi’s resignation. The board is also likely to declare a financial loss of Rs 30 crore for the quarter ended December 2011.

As _Firstpost_ reported earlier, trade unions and workers had alleged that the bank was window-dressing its financial statements and questioned its bad loans position. Though the management denied the allegations, the bank’s stock price took a severe beating and never really recovered.

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[caption id=“attachment_204995” align=“alignleft” width=“380” caption=“Dhanlaxmi Bank’s net profit surged 168% to Rs 4.35 crore from Rs 1.62 crore in the quarter ended September 30, 2011”]  [/caption]

Following the news of Chaturvedi’s resignation, Dhanalaxmi Bank shares closed 1.83 percent down at Rs 56.40 on the Bombay Stock Exchange.

Chaturvedi joined the bank in 2008 after a stint with Reliace Capital and ICICI Bank. However, interestingly, his resignation comes just after the Reserve Bank of India approved his extension as chief of the bank for three years till October 2014.

Sources told the Economic Times that Chaturvedi’s resignation is because of " differences between Mr Chaturvedi and some board members on issues related to HR and performance of the bank."

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