After Gurbaxani sacking by shareholders, Dhanlaxmi Bank looks for a new MD & CEO

Thrissur-based private sector lender, Dhanlaxmi Bank has invited applications to select a new Managing director and Chief executive officer (MD&CEO) following the dramatic ouster of former CEO, Sunil Gurbaxani late last month.

At the September 30 annual general meeting (AGM), shareholders had ousted Sunil Gurbaxani, the RBI-appointed MD & CEO with over 90 percent votes polled turning against his appointment. Following this, the RBI appointed a CoD (committee of directors) to take the interim charge.

According to an advertisement published by the bank in a newspaper on Wednesday, the candidate should be “a leader of exceptional integrity, who will be able to steer the bank to greater heights without compromising its unique heritage, while also implementing its vision and mission."

Earlier, in an Exclusive interview given to Mneycontrol  Gurbaxani had sought a probe into the events that led to his exit saying that neither the shareholders nor the Board had given him any hints of any performance issues during his six month tenure.

The decision of shareholders came as a surprise to him, Gurbaxani said. He alleged serious corporate governance issues in the bank.

Eligibility criteria

Dhanlaxmi Bank has sought at least 25 years of all-round banking experience from the CEO applicant as a commercial banker, preferably in areas such as branch operations, administration, credit, retail, SME, Treasury, Risk Management and Planning.

Further, the candidate should have been in the rank of general manager or above in a public or private sector bank for at least two years. Exposure to Board functions would be preferable, the advertisement said.

The CEO candidate should be in the age group of 52 to 63 years and should not be less than a graduate. The compensation will be commensurate with credentials and in conformity with RBI guidelines, Dhanlaxmi Bank said.

A controversial ouster

In the interview, Gurbaxani said the allegations against him supporting a “north lobby” by soliciting investments from north-based investors and opening branches in the northern part of the country were baseless.

“These rumours are totally baseless far away from the truth. As a matter of fact, we were consolidating and closing the branches in the north on a cost-effective basis. No discussion has ever happened on investments from such a lobby in the bank. No such lobby exists,” Gurbaxani said.

Gurbaxani said Dhanlaxmi Bank needs a deeper surgery to resolve the long-standing governance issues. “The deeper governance issues in the bank need surgery and not a bandage solution. Issues that have been chronic for many years, the exit of many previous officials including MDs and part-time chairman speaks seriousness on the lack of governance and deserves investigation,” Gurbaxani said.

A section of the shareholders had alleged that Gurbaxani was backing a so-called northern lobby to facilitate a takeover of the bank and lose its “Kerala identity”. This is believed to be the major reason why shareholders were unhappy with him.

In the last few months, Dhanlaxmi has witnessed several senior level exits. In June, three members of the board, including the chairman, quit due to differences with a section of shareholders but cited personal reasons for moving out.