The problems seen in Dhanalaxmi Bank is man made and made by the former Chairman Mr Chaturvedi.He has made a mess of it and the present incumbent has no magic wands to undo what ever damages Mr Chaturvedi has done. He went for a massive expansion of branches adding along with it additional human resources and loans using depositors' money. He has failed to do the balancing of various activities and he has gone unquestioned by the Board of Directors and the RBI. This is comparatively a small bank with a sound deposit base and a large number of clintele with all loyalty and continued relationship. All the parameters have gone from bad to worse to say the least; the establishment cost has gone beyond any control and the NPAs have grown perhaps with the full knowledge of the Board and the then Chairman. The bank needs to be kept in ICU with intensive monitoring by some stalwarts both in the Board and Top management. The timing is ideal now to set right as the economy has started picking up and there is improvement in the confidence level all around. The bank has a strong base and it can turn the corner comfortably. The HR needs motivation and made to perform. RBI has to ensure that the bank gets proper guidance and support to perform.
(This comment is in response to an Article on Dhanalxmi Bank that appeared in BS).
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