Dhanlaxmi Bank shares drop following independent director’s resignation

Shares of private lender Dhanlaxmi Bank fell by 9.2% on Monday, following the resignation of Independent Director Sridhar Kalyanasundaram over the weekend. The decline was triggered by Kalyanasundaram’s departure, which he attributed to disagreements with the bank’s board on issues such as the bank’s rights issue and capital position.

Kalyanasundaram, who joined the Thrissur, Kerala-based bank as an independent director in December 2022, had raised questions about the bank’s planned rights issue, which remained unresolved. In a letter to the exchanges dated Saturday, he alleged that he had been threatened with termination for expressing these concerns.

Moreover, Kalyanasundaram claimed that certain concerns, including those related to “irregularities” in the bank’s board and committee meetings and a recent one-time settlement with a corporate debtor, were overlooked.

The bank is currently led by CEO Shivan J.K., who did not immediately respond to media requests for comment on Monday. Despite the initial decline, Dhanlaxmi Bank’s shares partially recovered later in the day.

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