New Delhi, Dec 29 (PTI) Debt-ridden Dhanlaxmi Bank has proposed Shivan JK as its new Managing Director and Chief Executive Officer (CEO) and has sought shareholders' approval for the same.

Shivan retired as Chief General Manager of State Bank of India and handled various roles, including forex operations.

It has sought the approval from its shareholders to authorise the board to appoint Shivan as MD and CEO of the bank, Dhanlaxmi Bank said in a notice of postal ballot.

The development came a day after the Reserve Bank of India (RBI) appointed its General Manager D K Kashyap on the bank's board for two years.

Shareholders of Dhanlaxmi Bank in September ousted former CEO Sunil Gurbaxani. The proposal to approve the appointment of Gurbaxani as MD and CEO was opposed by over 90 per cent of shareholders at the annual general meeting (AGM).

The bank was placed under the Prompt Corrective Action (PCA) Framework by the RBI in November 2015 due to deteriorating financial health and only last year it came out of these restrictions. Since then it has been posting profit.

Bank unions AIBOC and AIBEA have flagged concerns over few developments at Dhanlaxmi Bank and sought immediate corrective measures by the RBI.

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