DHANALAXMI BANK

Bank union demands merger of 

Dhanlaxmi Bank with a PSB

A bank union on Friday demanded the merger of 

beleaguered Kerala-based lender Dhanlaxmi Bank   with a 

nationalised bank, alleging mismanagement.  The All-

India Bank Officers Association (AIBOA), which claims to be 

the second largest union of bank officers, urged "the RBI to 

initiate immediate steps to merge Dhanlaxmi Bank with a

 nationalised bank" to avoid conflict of interests in managing

 the affairs of the bank by the board and top management.  It

 

said the number of officers working on contractual basis is 

more than the ones employed under the scales laid down by

 the Indian Banks Association, while acknowledging that in 

2010, some officers were absorbed into the IBA scale by the

 bank.  The union added that after the Dhanlaxmi Bank

 Officers Union brought this anomaly to the notice of the RBI, 

the general secretary of the officers union was terminated in

 June 2015 without conducting an enquiry, while another 

official, who had no direct role to play in this, has been jailed,

 it alleged.  The union drew parallels between the state of

 affairs at Dhanlaxmi Bank and the erstwhile Nedungadi 

Bank, which was merged with  Punjab National Bank   in

 2003.  It said the merger over 10 years ago was driven 

because of mismanagement, wrong investment policies and

 derailment of industrial relations climate. "Dhanlaxmi is on

 the same track of deterioration," it warned.  It can be noted 

that the Thrissur, Kerala-based Dhanlaxmi has been in 

trouble for over four years now. It had reported a net loss of

 Rs 266.61 crore for the quarter ended March 2015. 

Dhanlaxmi Bank stock price On July 17, 2015, Dhanlaxmi

 Bank closed at Rs 32.10, down Rs 0.5, or 1.53 percent. The

 52-week high of the share was Rs 53.60 and the 52-week 

low was Rs 28.80.