Chennai: Stating that the small private sector bank Dhanlaxmi Bank which had turned around is back to old ways C.H. Venkatachalam, General Secretary, All India Bank Employees’ Association (AIBEA) said: “We strongly believe that RBI’s role in the Board of Directors of the Bank should be reviewed as otherwise RBI would become answerable if things go bad.”
In a letter to Shaktikanta Das, Governor, RBI on Saturday Venkatachalam said: “If Reserve Bank of India does not effectively intervene in the affairs of this Bank now, once again the Bank will run into problems. Slowly, the people and the customers of the Bank have regained their confidence about the Bank and any reversal of the same would be suicidal for the Bank.”
“We strongly believe that RBI’s role in the Board of Directors of the Bank should be reviewed as otherwise RBI would become answerable if things go bad,” Venkatachalam said and sought Das’ personal and urgent intervention.
Venkatachalam said the 93-year old small sized Kerala based Dhanlaxmi Bank around 2008-2012 was making losses.
The bank made a loss of over Rs 850 crore during that period as the top management brought it to serious problems and in the name of modernising it, Venkatachalam recalled.
