The board of Ujjivan Small Finance Financial institution is scheduled to fulfill on August 25 to nominate an Officer on Particular Responsibility (OSD) after its Managing Director and CEO Nitin Chugh tendered his resignation.
“The financial institution goes via a tough time as a result of Covid-19 pandemic, similar to all different small finance banks and micro finance establishments. Financially, the financial institution stays very sturdy and is properly capitalised,” mentioned Samit Ghosh, founder, Ujjivan Monetary Providers. Expressing shock over Chugh’s resolution to resign, Ghosh mentioned that it was for private causes.
“There may be nothing uncommon occurring with the financial institution,” he harassed.
Nonetheless, there have been considerations over provisions and asset high quality in addition to the spate of resignations on the administration degree and subject workplaces.
The assembly on August 25 can even induct 4 new members on the board. The appointment of a brand new MD and CEO is anticipated to take about three to 4 months.
Ujjivan SFB, in an announcement, mentioned the transition publish Chugh’s resignation is being easily managed, in session with the Reserve Financial institution of India.
“The financial institution has been working for a number of months to strengthen the board,” it mentioned in an announcement.
Noting that the financial institution has lately witnessed a number of challenges on the enterprise entrance, coupled with a number of resignations each on the board degree and senior administration, Ujjivan SFB additional mentioned: “The instant job of financial institution board in shut collaboration with the holding firm can be to convey again stability and obtain its desired targets and progress, full the reverse merger and see that shareholders’ curiosity is duly taken care of.”
Ujjivan SFB’s scrip closed 18.76 per cent down at ₹19.7 apiece on the BSE on Friday.
In a inventory alternate submitting on August 19, Ujjivan SFB had mentioned Chugh has tendered his resignation as MD and CEO citing private causes. He’ll step down from the position on September 30.
The lender has seen various board-level resignations in latest months. Its Chief Monetary Officer additionally tendered her resignation on July 7, which is efficient from September 30.
Registers internet loss
The financial institution had reported a standalone internet lack of ₹233.48 crore within the quarter ended June 30, 2021, with gross non-performing property rising to 9.79 per cent of gross advances.
BA Prabhakar, former CMD of Andhra Financial institution, and Chairman of NSDL, has joined the Ujjivan SFB’s board as an Impartial Director and is being thought of as Half-Time Chairman of the financial institution.
The board of Ujjivan Monetary Providers has nominated Samit Ghosh, the founding father of Ujjivan, as a typical (non-executive, non-independent) director on the financial institution board to supply oversight on some essential areas reminiscent of portfolio high quality and folks administration.