Vijay Shekhar Sharma steps down as Paytm Payments Bank's chairman, board reconstituted

Vijay Shekhar Sharma has stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), and the board of the bank has been reconstituted, the firm informed on Monday. The Reserve Bank has barred the PPBL from accepting deposits and credits from any customer post-March 15 for persistent non-compliances and continued material supervisory concerns in the bank.

PPBL has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, Paytm said in a regulatory filing on Monday.

These persons had recently joined as Independent Directors, it said. One 97 Communications Ltd (OCL) is the owner of the Paytm brand.

"The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the filing said.

OCL supports PPBL's move of opting for a board with only independent and executive directors by removing its nominee, it added. "PPBL's future business to be led by a reconstituted Board," the filing stated.

Who are PPBL's new Board members? 

Srinivasan Sridhar: He brings with him an illustrious career in banking spanning over 40 years. He is currently serving as the Independent Director at Jubilant Pharmova. He has held leadership positions at Export Import Bank of India, Central Bank of India and National Housing Bank.

Debendranath Sarangi: A retired IAS (1977 batch) of Tamil Nadu cadre, he is a veteran in public administration and corporate governance. He is currently serving as an Independent director on the boards of several companies including Southern Petrochemical Industries Corporation Limited and Voltas Ltd, among others.

Rajni Sekhri Sibal: She is a retired IAS officer of Haryana cadre (1986 batch) with 38 years of experience in administration and governance. She has served as Secretary, Government of India. Currently, she serves as an Independent External Monitor in the Public Sector and as an Independent Director in Corporates.

Ashok Kumar Garg: With 39 years of diverse banking experience, he has held significant positions including whole time Director at Bank of Baroda, Chief Executive for USA operations of the bank at New York, Managing Director of Bank of Baroda (Uganda) Ltd at Kampala and Chairman/Director of its subsidiaries in Guyana, Trinidad & Tobago and Kenya.

Beyond these, the board has former Executive Director of Punjab & Sind Bank Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm
Payments Bank.

Talking about the development, Surinder Chawla, MD & CEO at Paytm Payments Bank said, "We welcome the appointment of Shri Srinivasan Sridhar, Shri Debendranath Sarangi, Shri Ashok Kumar Garg, and Smt Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL's journey. 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."

Srinivasan Sridhar, Board Member, Paytm Payments Bank Board said, "I am dedicated to utilizing my extensive banking expertise to steer the bank towards expanding its range of compliant services. 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, Paytm Payments Bank 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."

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