Dhanlaxmi Bank has denied allegations of manipulation

By | September 6, 2011

Shares of Dhanlaxmi Bank gets depreciated about 24 per cent after the All India Bank Officers Confederation raised question about the lender’s financial health. The firm has opened its stock but surrendered the gains thereafter, the BSE and NSE stock value sinking to 52 week low. It hit a low of Rs 54.25 on the BSE and Rs.64.45 on the NSE.

In the Kerala headquartered Dhanlaxmi Bank, they claim the manipulation of accounts and provisioning, mis-match in asset-liability resources. The All India Bank Officers Confederation, Kerala state unit has demanded the banking regulator to conduct a detailed enquiry into the bank affairs.

Mr. Abraham Shaji John, State Secretary, AIBOC Kerala, urged the Reserve Bank of India to keep the fair and judicious enquiry with the presence of Managing director and other interested parties away from their position.

Dhanlaxmi Bank would like to clearly reiterate that allegations are baseless and represent a motivated attempt by one of the employee associations, de-recognized by the bank. Ms.Soujanya Pantula, Head, investor relations, said that the regulations of Reserve Bank of India must be supervised properly   in the Indian Banking system. In May 2011, Apex bank conducted the Annual Financial Inspection for checking the Banks overall performance.

The central bank had re-appointed the banks MD and CEO, as Mr.Amithab Chaturvedi. It affirms the facts that the audit and inspection into the bank’s book have found nothing amiss. However, AIBOC has appealed RBI to investigate the bank management and asked that the bank has merged to safeguard the interest of both customers and employees. It has also increased the interest rate on its 500-day deposit by 25 basis points to 9.75 per annum which will be applicable for deposits of less than and equal to Rs 15 lakh. The hike in interest rates has made its loans such as home loan, personal loan, auto loan, business loan etc costlier to the borrowers.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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