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.
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