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The students said they decided to lodge a formal complaint against Dr Efthikar Ahamed B when he crossed "all boundaries"
IUML leader P Abdul Hameed has taken board membership in the CPM-controlled bank.
IUML state president Sadiq Ali Shihab Thangal reiterated that his party would never switch sides.
The government decided to restrict media from covering the morning meeting after IUML leader Aboobacker's presence at the event triggered a political row.
The presence of N A Aboobacker (71), the state council member of the IUML, at the prominent citizens' meeting with the Chief Minister, sent a section of political reporters from the capital into a tizzy.
Sources close to the party hinted that disciplinary action would be taken against Aboobacker over the incident.
Before Pinarayi Vijayan's hour-long speech concluded, the majority in the audience had left their seats.
With the posters gaining media attention, IUML and Opposition UDF came out to quell rumours of a split in the camp.
The district collector has approved setting up a stage 100 metres from the Freedom Square.
He also criticised the Congress stance in the Israel-Palestine issue.