Dhanlaxmi Bank has dismissed accusations of financial irregularities as ‘motivated attempts' by one of the employee associations de-recognised by the bank.

The association had accused that the bank has borrowed high-cost funds in the form of Certificate of Deposits (CoD) of about Rs 2,500 crore, among others.

An official spokesman quoted the bank management as saying that in fact the most the bank is allowed to raise through the CoD route is Rs 1,500 crore.

‘WRONG ON FACTS'

There are multiple examples of such falsification of accounts by the association, the management said.

The Indian banking system in general and the private sector banks in particular, including Dhanlaxmi Bank, are subject to healthy supervision in the form of regulations from the Reserve Bank of India.

In fact, the apex bank in May 2011 had conducted and completed the annual financial inspection of the bank's overall performance.

EXTENSION TO MD

Moreover, the Central bank had only last week granted the Mr Amitabh Chaturvedi a second term of three years as Managing Director and Chief Executive Officer.

The re-appointment is an affirmation of the fact that the audits and inspection into the bank's books have found nothing amiss, the management claimed.

In the past three years, the bank has witnessed good growth and returned healthy financials.

CUSTOMER SUPPORT

This bears testimony to the support and the confidence the bank enjoys from its customers, regulators and other stakeholders.

The campaign therefore seems to be the handiwork of some misguided employees and some rank outsiders who have no stake in the well-being of the institution.

“This is an illegal and unscrupulous tactics to defame the franchise of the bank. We strongly take exception to the tactics of this association which has started an illegal agitation outside the bank headquarters,” the management said.

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