Paytm Bank rejigs board, inducts ex bankers, retired IAS officers, Sharma steps down as chairman

Vijay Shekhar Sharma steps down as chairman of Paytm Payments Bank amid regulatory crackdowns, new board members appointed.

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OCL also said it had withdrawn its nominee from PPBL’s board.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.