Vijay Shekhar Sharma has resigned as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) on Monday, and the board of the bank has been reconstituted.
The Reserve Bank has barred the PPBL from accepting deposits and credits from any customer post-March 15 for persistent non-compliances and continued material supervisory concerns in the bank. The action against Paytm Payments Bank followed "serious supervisory concerns", including inadequate customer identify and a lack of arms length distance with Paytm, Reuters quoted a source as saying.
PPBL reconstituted its board of directors with the appointment of former Central Bank of India chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, Paytm said in a regulatory filing on Monday. They had recently joined as independent directors, it said.
"The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the company said in a regulatory filing.
OCL supports PPBL's move of opting for a board with only independent and executive directors by removing its nominee, it added.
"PPBL's future business to be led by a reconstituted board," the filing said.
The expertise of the new board members will be "pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices", Reuters quoted Paytm Payments Bank CEO Surinder Chawla as saying.
PPBL will soon start the process of appointing a new chairman, the company said.
Who are the members in the new board of directors?
Srinivasan Sridhar has been a banker for over 40 years. He is currently serving as the independent director at Jubilant Pharmova. Sridhar has held leadership positions at Export Import Bank of India, Central Bank of India and National Housing Bank.
Debendranath Sarangi, retired IAS (1977 batch) of Tamil Nadu cadre, is a veteran in public administration and corporate governance. He is currently serving as an independent director on the boards of various companies including Southern Petrochemical Industries Corporation Limited and Voltas Ltd.
Rajni Sekhri Sibal is a retired IAS officer of Haryana cadre (1986 batch). She has 38 years of experience in administration and governance. Sibal has served as secretary, government of India. Currently, she serves as an independent external monitor in the public sector and as an independent director in corporates.
Ashok Kumar Garg who comes on board with 39 years of diverse banking experience, has held significant positions including whole time director at Bank of Baroda, Cchief Executive for USA operations of the bank at New York, managing director of Bank of Baroda (Uganda) Ltd at Kampala and chairman/director of its subsidiaries in Guyana, Trinidad & Tobago and Kenya.
