The Reserve Bank of India (RBI) logo is displayed at the entrance to the bank’s headquarters in Mumbai (Photographer: Kainaz Amaria/Bloomberg)

RBI Asks Dhanlaxmi Bank To ‘Keep In Abeyance’ Appointment Of Non-Independent Director Arun Rao

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

On May 15, the bank had announced the appointment of Rao as a new additional non-independent director on its board. 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.

The bank has not provided any reason for RBI’s advice with regard to the appointment.

The private sector lender, which is grappling with deteriorating asset quality, was supposed to declare its quarterly and yearly results for fiscal ended March 2018 on May 15. It has now deferred it to May 23, 2018, citing “better representation on conservative basis”.

The bank’s net loss widened to Rs 21.74 crore in the third quarter ended December 2017-18 from Rs 8.18 crore in the year ago period.

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