According to sources, the Bank's MD & CEO has resigned due to serious differences with other Board members
Dhanalaxmi Bank Ltd's managing director and chief executive, Amitabh Chaturvedi has resigned from the bank. The Bank’s board of directors are meeting today at 4pm and may declare financial losses of about Rs30 crore. However, we learned that this has nothing to do with the resignation of Mr Chaturvedi and he may have resigned due to serious differences with some of the Board members.
According to the sources, the bank is facing liquidity problems and may report financial losses of about Rs30 crore. However, the lender is not in serious trouble, the sources added.
Last year in November, the RBI conducted an inspection and issued a 15-point Monitorable Action Plan (MAP) to Dhanlaxmi Bank. This was followed by the furore caused due to a memorandum sent by the All India Bank Officers’ Confederation to the RBI stating the weak financials and certain wrongdoings by the bank.
As per the MAP, Dhanlaxmi Bank should moderate its loan growth, year-on-year, to 25% for 2011-12, should not be dependent on portfolio buyouts and should focus on increasing its direct advances. It has asked the bank to improve its earnings ratio and cash-income (efficiency) ratio to 70% by March 2012 from its current 83.73% during 2010-11. (Read more...RBI directs Dhanlaxmi Bank to adhere to its action plan)
The AIBOC alleged that the bank has manipulated accounts and provisioning, has a mismatch in asset-liability resources, maintains poor capital adequacy ratio and has huge dependence on call money borrowing. It has also accused the bank for ignoring social banking and financial inclusion. After, Moneylife broke the story, the share price of Dhanlaxmi Bank tanked by more than 20%, touching its 52-week low of Rs54.40. ( read more.. )
Mr Charurvedi was appointed as MD and CEO on 13 October 2008, as per the bank's website.
Dhanalaxmi Bank shares closed 2% down at Rs56.30 on the Bombay Stock Exchange, while the BSE Sensex ended the day 102 points or 0.38% higher at 17,707.31.
The licence of Uninor, along with other new operators, has been cancelled after the Supreme Court’s judgement last week on the basis that all 122 2G licences were issued illegally in January 2008 by former telecom minister A Raja
New Delhi: New operator Uninor, a joint venture between Telenor of Norway and Unitech, today said the company will participate in second generation (2G) spectrum auction but did not rule out exit option from the Indian market, reports PTI.
“In principle we will go for auction but I am not saying that whether we will win everything ... So, the option of exit cannot be ruled out,” Uninor managing director and Telenor’s Asia head Sigve Brekke told reporters here.
He also said that company would finalise its strategy after looking at the base price and the reserve price for the spectrum.
The licence of Uninor, along with other new operators, has been cancelled after the Supreme Court’s judgement last week on the basis that all 122 2G licences were issued illegally in January 2008 by former telecom minister A Raja.
The apex court has asked the government to seek fresh recommendations from the Telecom Regulatory Authority of India (TRAI) to distribute licences and spectrum through auction and complete the process within four months.
Asked whether the company would bid for all the circles, he said “at this time it is difficult to say whether we will bid or not or for how many circles ... we have to see the base price first”.
He, however, asserted that the auction should be among the new operators like it was in 2008 and incumbent players, who already have spectrum, should not be allowed to participate.
At one point of time he also indicated that the company was here for long time and not closing down operations.
Meanwhile, TRAI has initiated the process to give recommendations on the auction process and has sought views from the industry and other stakeholders.
Uninor had earlier ruled out laying off employees in the wake of Supreme Court’s cancellation of 122 2G licences that has hit the company badly.
“Uninor services are continuing. This means we will continue to serve our 36 million customers, work with our 22,000 partners and keep building our presence in the market.
“It is the Uninor team that has made the company by far the most successful new operator and it is this team that will continue to do so in the months to come,” a company spokesperson had told PTI.
Uninor MD, however, alleged that competitors are following ‘unethical’ trade practices to poach their subscribers and the company has filed a complaint with the GSM lobby COAI regarding this.
“We will be coming out with advertisement for our customers assuring that we are very much here,” Mr Sigve said.
Uninor is a joint venture between real estate major Unitech and Telenor of Norway. Telenor now holds 67.25% ownership share in the company.
Uninor claims to have invested over Rs14,000 crore in Indian operations and has a subscriber base of nearly 40 million as of now.
PFC has set a target of disbursing Rs35,000 crore during FY12 of which Rs25,400 crore has been doled out. The state run lender also had to disburse Rs10,000 crore to NTPC by the end of this fiscal
New Delhi: State-run Power Finance Corporation (PFC) on Monday said it would raise Rs40,000 crore in the next financial year (FY13), reports PTI.
"Our fund raising target for FY13 is Rs40,000 crore," PFC Chairman and Managing Director Satnam Singh told reporters here.
The company, which provides financing to the power sector, had set a target of raising Rs30,000 crore for this fiscal. It has has raised Rs28,000 crore this fiscal so far.
PFC has set a target of disbursing Rs35,000 crore during FY12 of which Rs25,400 crore has been doled out. It plans to up the disbursal target to Rs40,000 crore in FY13.
"We will keep increasing this target in the coming financial year," Mr Singh said.
PFC would disburse the Rs10,000 crore loan signed with state-owned NTPC by the end of this fiscal. This loan agreement was signed in FY09. It has so far disbursed Rs8,000 crore.