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Kolkata: Shareholders of Kerala-based Dhanlaxmi Bank have rejected the appointment of chief executive Sunil Gurbaxani at the bank's annual general meeting, barely within a week of a similar incident at Lakshmi Vilas Bank, showing shareholders' strength like never before.
Gurbaxani had taken charge at the bank in February for three years.
The bank made its highest ever annual net profit of Rs 66 crore while there was an undercurrent against him, sources familiar with the matter said.
All India Bank Employees Association recently wrote a letter to the Reserve Bank of India against the way the bank is run.
At the AGM of the 100% publicly held bank, 42 shareholders with 90.5% rights voted against Gurbaxani's appointment, according to the bank's regulatory filing to stock exchanges. About 112 voters with 9.5% weight were in favour of the appointment.
Non-resident Indians form the largest group of shareholders in the bank with 32.25% holding while corporates hold 30.38%. Individuals hold 20.21% and foreign portfolio/institutional investors hold 17.16% at the end of June.
Last Friday, shareholders of the capital-starved Lakshmi Vilas Bank voted against chief executive S Sundar and six other independent directors alleging that part of accountability of deteriorating financials rests on them.
Gurbaxani had taken charge at the bank in February for three years.
The bank made its highest ever annual net profit of Rs 66 crore while there was an undercurrent against him, sources familiar with the matter said.
All India Bank Employees Association recently wrote a letter to the Reserve Bank of India against the way the bank is run.
At the AGM of the 100% publicly held bank, 42 shareholders with 90.5% rights voted against Gurbaxani's appointment, according to the bank's regulatory filing to stock exchanges. About 112 voters with 9.5% weight were in favour of the appointment.
Non-resident Indians form the largest group of shareholders in the bank with 32.25% holding while corporates hold 30.38%. Individuals hold 20.21% and foreign portfolio/institutional investors hold 17.16% at the end of June.
Last Friday, shareholders of the capital-starved Lakshmi Vilas Bank voted against chief executive S Sundar and six other independent directors alleging that part of accountability of deteriorating financials rests on them.