Dhanlaxmi Bank board orders 3-year expenditure audit

The board of Dhanlaxmi Bank has appointed Chennai-based auditor PB Vijayraghavan & Co to conduct an ‘ expenditure audit’. The process will check whether the bank followed proper procedures regarding expenditures undertaken by the bank in the past three years.

The board’s contention is that the previous management, under the leadership of Amitabh Chaturvedi, spent enormous amount of money without following proper procedures, which had triggered the departure of Chaturvedi.

Between 2009 and 2011, staff expenses rose from Rs 62 crore to Rs 201 crore, operating expense from Rs 49 crore to Rs 143 crore while net profit was down from Rs 57 crore to Rs 26 crore.