Paytm Payments Bank announces board rejig
In a major overhaul following the clampdown by the Reserve Bank of India (RBI), One 97 Communications Ltd (OCL) announced on Monday that the Paytm Payments Bank Limited has reconstituted its board of directors. As part of PPBL’s top leadership rejig, ex-Central Bank of India Chairman Srinivasan Sridhar, Retd IAS Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd IAS Rajni Sekhri Sibal will join the board, OCL announced on Monday.
“They have recently joined as Independent Directors,” Paytm informed stock exchanges in a filing, adding, “OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee.”
In the same exchange filing, the parent company informed that Vijay Shekhar Sharma will step down as as part-time non-executive Chairman and Board member to enable this transition. While Vijay Shekhar Sharma owns 51 per cent stake in Paytm Payments Bank, One 97 Communications owns the rest.
The future business of PPBL will be led by a reconstituted Board, said the company in its stock exchange filing on Monday. PPBL has informed One 97 Communications Ltd that they will commence the process of appointing a new Chairman.
The new board members’ expertise will be “pivotal in guiding us toward enhancing our governance structures and operational standards”, Paytm Payments Bank CEO Surinder Chawla told Reuters.
The Reserve Bank of India (RBI) had asked Paytm Payments Bank to wind down operations by March 15 due to persistent non-compliances and continued material supervisory concerns, triggering a meltdown in Paytm’s stock.
WHO ARE THE NEW BOARD MEMBERS?
The exchange filing mentions: “Shri Sridhar brings with him an illustrious career in banking spanning over 40 years. He is currently serving as the Independent Director at Jubilant Pharmova. He has held leadership positions at Export Import Bank of India, Central Bank of India and National Housing Bank.”
“Shri 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 several companies including Southern Petrochemical Industries Corporation Limited and Voltas Ltd, among others.”
“Smt Sibal is a retired IAS officer of Haryana cadre (1986 batch) with 38 years of experience in administration and governance. She 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.”
It said, “Shri Garg, with 39 years of diverse banking experience, has held significant positions including whole time Director at Bank of Baroda, Chief 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.”
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Published: 26 Feb 2024, 08:40 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.