Dhanlaxmi Bank has received approval from the Reserve Bank of India (RBI) for the appointment of Ajith Kumar K.K as its new Managing Director & CEO, as per an exchange filing on April 19.
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In a letter dated April 18, 2024, the RBI conveyed its approval under Section 35B of the Banking Regulation Act, 1949, for Ajith Kumar K.K. to take charge as the MD & CEO of Dhanlaxmi Bank for a tenure of three years.
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Dhanlaxmi Bank was trading down 2.28 per cent at ₹42.80 on April 19, at 9:31 am on the . Shares of Dhanlaxmi Bank, which has a market capitalisation of ₹1,082.89 crore, is down 35 per cent from its 52-weeks high of ₹58.70.
Kumar will take over from J.K. Shivan as Managing Director and CEO.
The Reserve Bank of India (RBI) had in January approved Dhanlaxmi Bank’s request to extend the term of Shivan as Managing Director and CEO till a successor takes over. Shivan’s original term ended on January 29, 2024.
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Kumar, a seasoned banker with over 36 years of experience at Federal Bank, has held various leadership roles spanning credit, human resources, business operations, and branch banking. He is currently serving as the Chief Human Resources Officer at Federal Bank in the cadre of President, as per the filing.
A meeting of the bank’s Board of Directors will be convened in due course to formally approve the appointment. Subsequently, the appointment will be placed before the bank’s shareholders for their approval, in line with regulatory requirements.
On January 12, the RBI imposed monetary penalties of varying degrees, against ESAF Small Finance Bank, Dhanlaxmi Bank, and Punjab and Sind Bank over various non-compliance issues.
