One 97 Communications Ltd (OCL)., the promoter of Paytm Payments Bank Ltd. (PPBL), on Monday said Vijay Shekhar Sharma had stepped down as the non-executive chairman and board member of the payment bank.
The move follows a series of regulatory crackdowns and loss of shareholder value.
OCL also announced major changes to the board of the payment bank in an attempt to prevent its liquidation on account of continuous non-compliance of regulatory norms.
The parent also informed stock exchanges that PPBL’s board had been reconstituted with the appointment of former chairman of Central Bank of India Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg and retired IAS officer Rajni Sekhri Sibal. All of them had recently joined as independent directors.
OCL also said it had withdrawn its nominee from PPBL’s board.
“PPBL has informed us that they will commence the process of appointing a new chairman,” OCL said in the filing.
Apart from the new appointees, the PPBL board has former Executive Director of Punjab & Sind Bank Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO.
Surinder Chawla, MD & CEO, PPBL, in a statement said the appointments make a significant step forward in PPBL’s journey.
“Their [the board members’] distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices,” he said.
Srinivasan Sridhar, Board Member, PPBL said, “It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to the stakeholders, in strict adherence with regulatory frameworks and best practices.”
Debendranath Sarangi, Board Member, PPBL said, “Assuming this expanded role at a critical juncture for PPBL, my dedication is firmly rooted in adhering to and exceeding the highest standards of regulatory compliance and corporate governance.”
“I am wholly committed to applying my expertise to navigate PPBL towards a future characterized by operational excellence, ensuring strict compliance with regulatory guidelines and fostering a culture of best practices,” he added. Despite these changes regulatory action on PPBL would continue. On Monday, OCL stock gained 4.99% to close at ₹427.95 on the BSE.
