I see that the connection is retried anonymously, which is incorrect. This issue is known, and it has been fixed in HEAD code by using identity assertion to retry non-anonymous connections. Another option would be to set "rebind-as-user", so that user credentials are saved and used to retry non-anonymous connections.
I tried the rebind-as-user approach and that works :) Will try out the HEAD soon. Thank you.
Ashish Gawarikar