Dhanlaxmi Bank Ltd.”s independent director Sridhar Kalyanasundaram has stepped down from the board, alleging “factionalism” and “unethical business conduct.”

The company acknowledged his resignation in an exchange filing on Monday. Kalyanasundaram, who is also a whistle-blower, has raised many issues, including the bank”s rights issue and the “belligerent attitude” of managing director and chief executive officer Shivan JK.

In his resignation letter, Kalyanasundaram said that the bank”s rights issue had been held up for over nine months due to various issues. He also alleged that the MD and the company secretary had been conducting board and committee meetings in an irregular manner, and that this had been brushed away as “not a serious issue.”

Kalyanasundaram also raised concerns about the bank”s one-time settlement scheme, alleging that it had been used in cases where it had no impact on the bank”s non-performing asset position.

Dhanlaxmi Bank has accepted Kalyanasundaram”s resignation. The bank is headquartered in Thrissur, Kerala, and has 245 branches and 258 ATMs/CDMs spread over several states.

In the June quarter, the Thrissur-based bank posted a net profit of Rs 28.30 crore, which is 207% higher than the same quarter in the previous year. Total income also increased by 44% to reach Rs 341.40 crore.