The Hindu : Business : Two fail to get berth on Federal Bank board

Online edition of India's National Newspaper
Wednesday, Sep 29, 2004

Business

Business

Two fail to get berth on Federal Bank board

By Our Special Correspondent

KOCHI, SEPT. 28. Federal Bank recorded a 24.2 per cent growth in its operating profit for 2004 at Rs. 437 crores.

Disclosing this at the 73rd annual general meeting of the bank on Monday, its Chairman, K. P. Padmakumar, said the bank had decided to pay 70 per cent dividend. The `official' nominees who contested for the board of directors at the conclusion of the annual general meeting of Federal Bank here yesterday were successful.

Five were in the fray for the three posts which fell vacant on the directors board. K. P. Fabian, P. C. Cyriac, C. J. George, P. H. Ravikumar and Prof. M. M. Salim contested and the last two could not muster enough support. Mr. Ravikumar reportedly had the backing of ICICI Bank, which proposed him as a replacement for M. S. Parthasarathy who had retired after an eight-year stint at the bank. Prof. Salim who had opted for re-election was also defeated, The results of voting were announced around 2 a.m. on Tuesday.

One of the resolutions to raise the capital to Rs. 200 crores for private placement was also not passed. A move to bring in an amendment to the article of association of the bank to split the post of the chairman into that of a non-executive chairman and the creation of a new post of managing director was also not successful.

There were rumours that ICICI Bank would approach the courts citing `improprieties' in the conduct of the elections, though there was no official word on it.

Our Mumbai Correspondent writes:

CLB stays resolutions

ICICI Bank was granted a stay order by the Company Law Board on the resolutions put to vote in the annual general meeting of Federal Bank on Monday. With this, the appointment of directors will not be effective till the case is heard.

The CLB passed this order on the plea of ICICI Bank that it was denied to exercise its entire voting rights in the AGM on Monday.

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