One 97 Communications Ltd (OCL) has announced the stepping down of CEO Vijay Shekhar Sharma (VSS) from the board of the embattled Paytm Payments Bank Limited as the associate looks to reconstitute its board to chart the future course, the parent firm said in a regulatory filing on Monday.
OCL said that VSS has stepped down as the part-time Non-Executive Chairman and Board member of the banking unit and that PPBL will now be headed by a board reconstituted with only independent and executive directors. PPBL has informed us that they will commence the process of appointing a new Chairman.
The announcement comes almost four weeks after the Reserve Bank of India barred PPBL from accepting new deposits in its accounts and its digital wallets from March 15 citing supervisory concerns and non-compliance.
Amid growing uncertainty around its future, PPBL has reconstituted its Board of Directors with former bankers and IAS officials in a desperate bid to address the compliance issues that have dented the fintech firm ever since the central bank’s snub on January 31.
The Paytm stock has slumped to 427.95 from 761 on January 31, wiping away more than 43% of investor wealth at the BSE. The filing announced the appointment of ex-Central Bank of India Chairman Shri Srinivasan Sridhar, retired IAS officer Shri Debendranath Sarangi, former Executive Director of Bank of Baroda Shri Ashok Kumar Garg, and Retd. IAS Smt Rajni Sekhri Sibal to the board.
"Their 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,” said Surinder Chawla, MD & CEO at Paytm Payments Bank.
The board has former Executive Director of Punjab & Sind Bank Shri Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm Payments Bank, the filing added.
