'Keep in abeyance' non-independent director Arun Rao's appointment:RBI to Dhanlaxmi Bank

Private sector lender Dhanlaxmi Bank today said the RBI has asked it to keep in abeyance, till further advice, the appointment of non-independent director Arun Rao M.G.

Earlier on May 15, the bank had announced the appointment of Rao as a new additional non-independent director on its board. Also, it had said that the independent director G Vijaya Raghavan resigned the same day.

"It is hereby informed that Reserve Bank of India vide...letter dated May 16, 2018, has advised the bank that the proposal for the appointment of Arun Rao M G as a non-independent director on the board of the bank may be kept in abeyance, till further advice," Dhanlaxmi Bank said in a regulatory filing.

However, the bank has not provided any reason for the RBI advice given to it with regard to the appointment.

The NPA-hit private sector lender, which was supposed to declare its quarterly and yearly results for fiscal ended March 2018 on May 15, has deferred it to May 23, 2018, citing "better representation on conservative basis".

The bank had posted a net loss in the third quarter ended December 2017-18 at Rs 21.74 crore, which had widened from year ago's net loss of Rs 8.18 crore.

In the quarter, it had witnessed a meagre profit of Rs 6.06 crore.

Stock of Dhanlaxmi Bank traded at Rs 18.95 on the BSE, down 3.41 per cent from the previous close.