Saraswat Bank Md Eased Out

The board of the Mumbai-headquartered Saraswat Co-operative Bank Ltd terminated the services of managing director D R Shirdokar on Saturday and appointed S K Banerjee, general manager (legal), as acting managing director.

Shirodkar said the board expressed no confidence in his system of working. He joined Saraswat Bank in 1970 as a sub-accountant and rose to the position of managing director in 1998. Banerjee was also not available for comments.

Insiders said that Shirodkar was sacked as he refused to yield to extraneous influences. He was a victim of a political game, they added.

Saraswat Bank was in the news recently as it sent a legal notice to i-flex Solutions claiming damages of Rs 250 crore on account of opportunity loss, loss of business and other costs on account of problems in implementing on time 'Flex Cube', a complete core banking solution package which would enable the bank to operate through a centralised network and automating its retail, treasury and wholesale banking operations with the total contract value working out to a sum of Rs 3.5 crore.

However, instead of suing for damages immediately, the bank has chosen to appoint an arbitrator and then file a writ petition seeking certain injunctions.

i-flex solutions on its part is contemplating filing a defamation suit of more than Rs 250 crore against the bank for wrongful damage to its reputation especially at the time of its initial public offering when the company was constrained in replying to the charges following regulatory compulsions.