The bank, which has 275 branches across the country, is downsizing under a revival plan presented to the board on 28 March by PG Jayakumar, managing director and chief executive of Dhanlaxmi Bank. According to the programme, some branches are operating at "high-cost areas" and should be closed down. These include offices in Mumbai and Delhi.

Part of the change is the possible appointment of Muralidaran Rajamani, currently chief operating officer, as deputy CEO. The bank has yet to confirm if these plans will push through. 

Dhanlaxmi Bank has been suffering from high operating costs following the massive expansion drive that has been happening over the past years. The company said that in the December quarter, its expenses had ballooned by 41.74 per cent from the previous year. The need to realign strategies was highlighted further after Amitabh Chaturvedi resigned from the CEO post in March.