Dhanlaxmi Bank may appoint former SBI official J K Shivan as its MD & CEO

Sunil Gurbaxani was voted out after bitter battle with the Board

Dhanlaxmi Bank Limited is planning to appoint J K Shivan as the Managing Director & CEO of the Bank.

Shareholders of Kerala-based Dhanlaxmi Bank had voted against former managing director and CEO Sunil Gurbaxani on September 30. He, however, alleged that directors put pressure on him to quit after he raised various governance issues.

The Board of Directors of the bank recommended a panel of candidates to Reserve Bank of India for appointment as Managing Director & CEO. One of the candidates recommended by the Board was Shivan. The banking regulator has directed the Bank to submit a proposal before it after the appointment of Shivan is approved by the shareholders.

Therefore, the Board of Directors have placed the proposal for the consent of the shareholders authorising the bank to appoint Shivan as Managing Director & CEO.

Shivan has over 37 years of experience in SBI.

He has headed corporate banking, international & forex operations and was also involved in retail advances and agriculture credit. 

He also has experience as Branch/ Regional Head in SBI. He retired as Chief General Manager of Stressed Assets Resolution Group of SBI. He was retail branch head for six years in Kerala in rural and urban centres of SBI. 

Gurbaxani was appointed as Managing Director & CEO of the Bank for a period of three years with effect from February, 2020. However, the ordinary resolution moved for Gurbaxani's appointment was defeated, with 90.49 per cent of the votes polled against the proposal in September 2020. Only 9.51 per cent of the votes were polled in favour of his appointment. Out of the 10 resolutions moved at the AGM, the shareholders had passed nine and defeated one.

Gurbaxani alleged that a conspiracy was hatched and it needs to be investigated. "Just because I have raised governance issues I have become a victim. The exit should be seen as a result of staying truthful to ethics and governance," he had earlier said.