Dhanlaxmi Bank MD Amitabh Chaturvedi resigns

Dhanlaxmi Bank's Managing Director and Chief Executive Amitabh Chaturvedi has put in his papers. The bank's board met in Mumbai and accepted his resignation. PG Jayakumar, the executive director of the bank will replace Chaturvedi.

Chaturvedi confirmed the development.

The move has surprised industry analysts and bankers even though the private lender has been facing major unrest from a section of the union in the past few months.

The All India Bank Officers' Confederation (AIBOC) accused the bank of 'window dressing' its accounts to show inflated profits. The bank had dismissed the allegations made by the employees' union.

Chaturvedi took charge of the old generation private sector bank in 2008 after a stint with ICICI Bank and Reliance Capital. He was credited with the success of turning around the ailing private sector bank within a short time.

Recently, the Reserve Bank of India has allowed extension of his tenure as the managing director and chief executive.

Dhanlaxmi Bank's net profit surged 168% to Rs 4.35 crore from Rs 1.62 crore in the quarter ended September 30, 2011.