Dhanalaxmi Bank Independent Director Kalyanasundaram Resigns Citing Lack Of Support Among Other Issues

Sridhar Kalyanasundaram, Independent Director of Dhanlaxmi Bank, resigned on 16th September, 2023. He was appointed to the board in December 2022 therefore the resignation came as a surprise.

In his resignation letter to the board of directors, Kalyanasundaram cited multiple issues in the functioning of the bank as well as internal differences within the board. Referring to the lack of support from other board members in committee meetings he underlined the limited domain knowledge among board members when it came to banking-related issues.

Kalyanasundaram who does not hold directorship in any other listed company said in his resignation letter that his views were ignored by the board “just to support the belligerent attitude of the MD & CEO”.  He further says, “I am not the only or even the first director to face his wrath for not towing his line, as many had left rendering this Board legally inconsistent with required composition.”

In his detailed resignation letter, Kalyanasundaram alleged that the management has been trying to push through the rights issue without following due procedures. He also said that the board has been ignoring “whistle-blower” complaints as the board members saw it as “the habit in this bank over time.”

Sridhar Kalyanasundaram chaired the Risk Management Committee of the board and was a member of 8 other committees including the Audit Committee and the Equity Issuance Committee.