Dhanlaxmi Bank announced on April 19 that the Reserve Bank of India (RBI) has approved the appointment of Ajith Kumar K.K as its new Managing Director & CEO. The approval, conveyed in a letter dated April 18, 2024, under Section 35B of the Banking Regulation Act, 1949, grants Ajith Kumar K.K. a tenure of three years in the position.
Despite this positive development, Dhanlaxmi Bank’s shares were down 2.28 percent at ₹42.80 on April 19, 9:31 am on the BSE. The bank, with a market capitalization of ₹1,082.89 crore, has witnessed a decline of 35 percent from its 52-week high of ₹58.70.
Ajith Kumar K.K. will be replacing J.K. Shivan as the Managing Director and CEO of Dhanlaxmi Bank. Earlier in January, the RBI had approved the extension of Shivan’s term until a successor was appointed. Shivan’s original term ended on January 29, 2024.
Ajith Kumar K.K., a seasoned banker with over 36 years of experience at Federal Bank, currently serves as the Chief Human Resources Officer at Federal Bank in the cadre of President. He has held various leadership roles in credit, human resources, business operations, and branch banking.
A meeting of Dhanlaxmi Bank’s Board of Directors will be convened to formally approve Ajith Kumar K.K.’s appointment. Subsequently, the appointment will be presented to the bank’s shareholders for their approval, as per regulatory requirements.
Additionally, on January 12, the RBI imposed monetary penalties against ESAF Small Finance Bank, Dhanlaxmi Bank, and Punjab and Sind Bank for various non-compliance issues.
