homebusiness NewsHave discussed with RBI, will put in a transition plan soon: Ujjivan Financial Services
Have discussed with RBI, will put in a transition plan soon: Ujjivan Financial Services
Ujjivan Small Finance Bank MD and CEO Nitin Chugh resigned citing personal reasons, with effect from September 30.
Samit Ghosh, non-executive director and Chairman of Ujjivan Financial Services, on Friday said the company has been working on strengthening the bank board for the past 4 months.
“For last few months, we have been working on strengthening the bank board and we brought in four new directors at the same time, which coincidentally was announced yesterday, both of them are to ensure that we have stability on the board and also at the management level,” he told CNBC-TV18.
“A lot of our older people left, and some of the newer people who came in, could not really adapt to a situation in Ujjivan, and they decided to leave. But we have been working for many months to strengthen the bank board, and that's why you see the induction of four very strong set of people coming in the bank board,” he added.
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However, he said that Nitin Chugh’s resignation did come as a surprise. Ghosh further added that the company has discussed with the RBI and will soon put in a transition plan.
“We have discussed with the Reserve Bank of India a transition plan, where we will put in a special offset duty and interim CEO, once Nitin leaves and decide on who is going to be the permanent CEO after that,” Ghosh said.
Ujjivan Small Finance Bank MD and CEO Nitin Chugh resigned citing personal reasons, with effect from September 30.
Ghosh also said the company is concerned about portfolio problems and people issues over the past 1 year.
“We have been very concerned about the portfolio quality problems for last one year and also the people issues. The third is managing the reverse merger smoothly, and those are the three areas for which our holding company board has specifically tasked me to join the bank board and work closely with the bank board so that we work in a much more coordinated manner,” he said.
Ujjivan Small Finance Bank's share fell over 8 percent on resignation of Chugh.
(Edited by : Bivekananda Biswas)
First Published: Aug 20, 2021 3:56 PM IST
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