Sridhar Kalyanasundaram, an independent director of the private lender Dhanlaxmi Bank, stepped down from the board, with effect from 16 September.
In his resignation letter, Kalyanasundaram has raised issues like factionalism in the board, failure of board to rectify complaints and alleged unethical conduct of the bank’s business.
“I had advised the irregularities in the manner that the MD and the Company Secretary were conducting the Board and Committee Meetings deciding on the Agenda and the frequency of the same, at both the meetings of the Independent Directors. It was brushed away as ‘not a serious issue’,” said Kalyanasundaram in his resignation letter.
One of the significant difficulties mentioned is the ’81 queries’ in relation to the bank’s rights issue on the issue agreement suggested with the issue manager. He claims that it has still not been settled. “It is even unresolved today, despite various legal inputs from different quarters, and compromise meetings in June/July,” he stated.
He also brought up the anticipated Rs 130 crore rights issue-based injection, which is insufficient for the bank to be competitive and relevant.
Also mentioned was a problem with the OTS programme, which the banking industry as a whole had successfully used to deal with the NPA issues. He said that its executives used it even in cases when it had no effect on the Bank’s NPA position.
In a letter sent to the board’s members on September 4, Kalyanasundaram warned them that if the bank did not send the case to the adjudicating authority as suggested, he would be forced to do so on his own behalf as an independent director.