Nedungadi Bank chairman resigns
Kozhikode: Pursuant to a Reserve Bank of India inquiry which found that bank guilty of violating the arbitrage norms that lead to the blocking of a large amount of bank funds in the hands of brokers, the chairman and managing director of The Nedungadi Bank Ltd (NBL), Mr. AR Moorthy has resigned.

Mr Moorthy, had earlier gone on leave after the RBI asked him to abstain from day-to-day functioning of the bank.

NBL’s outstanding bad assets with sharebrokers is believed to be over Rs 20 crore. At one point of time, it was said to be have touched Rs 90 crore.

The board is understood to have constituted a three-member committee of directors presided over by Mr CV Nair and consisting of Mr Rathnasingh and Mr PS Menon to exercise the financial powers in the absence of Mr Moorthy. The bank’s administrative powers will be vested with the bank’s general manager Mr. Narayanan.

Banking industry sources however expressed surprise over RBI’s action against Mr. Moorthy given the fact that the central bank has not shown a similar haste in taking action against Global Trust Bank chief executive Ramesh Gelli.

Mr Moorthy, a former general manager of Andhra Bank, has been instrumental in giving a new vision and direction to the NBL which has major presence in Kerala, Tamil Nadu and Karnataka.
Back to News Review index page  

Sterlite Optical loses three executives to competition
Mumbai: Three senior executives from Sterlite Optical Technologies , India’s largest manufacturer of fibre optic, have recently crossed over to its competitor, Aksh Optifibre, the second largest fiblre optic manufacturer.

Mr. Rajeev Naik, who used to oversee the commercial functions at Sterlite, has been appointed the chief executive at Aksh. The other two senior executives to leave are logistics head Mr. Ajay Kumar, who joined Aksh in the same capacity and Mr. Ashok Agarwal, the former head of the fibre division.

Both SOTL and Aksh have announced expansion plans in their optical fibre capacities. SOTL has also a large export presence, while Aksh is focussing on the domestic market.
Back to News Review index page