JK Shiven more likely to be Dhanlaxmi Financial institution’s subsequent MD and CEO: Sources

Shareholders of Dhanlaxmi Bank has approved appointment of JK Shivan as the next managing director and chief executive officer (CEO) of the bank, highly placed sources in the bank said on Monday. The official result is expected only by Tuesday.

The Reserve Bank of India (RBI) had asked the Dhanlaxmi Bank Board to get shareholders’ approval before appointing JK Shivan as the next MD and CEO of the bank.

The move is considered somewhat unusual since typically, the board appoints the candidate recommended by the regulator as additional director and then seeks the shareholders’ approval at the next AGM.

The Kerala based bank Board had moved a resolution on December 26, as asked by RBI, for shareholders’ approval via electronic voting, for the appointment of the next managing director and CEO the bank

The lender has seen two of its MD and CEO resign before the end of their tenure after losing the confidence of the shareholders. The bank had gone through a bad phase during 2008-2013 and was under the Prompt Corrective Action (PCA) framework of the RBI for some time.

Sunil Gurbaxani was voted out from the post of managing director and CEO of Dhanlaxmi Bank by more than 90 % of the shareholders on October 1, 2020, in the first AGM held after he was appointed in February 2020.

The bank is currently managed by a committee of directors and RBI has given the bank four months to appoint a new head.

Palakkad based Shivan has over 37 years of experience in State Bank of India (SBI) and has handled various areas of functional areas commercial banking.