In a significant turn of events, Vijay Shekhar Sharma has tendered his resignation as the non-executive chairman of Paytm Payments Bank Ltd. (PPBL). This move has prompted a restructuring within the Board of Directors of PPBL, a development disclosed to the stock exchange. Notably, the Reserve Bank of India (RBI) has imposed penalties on PPBL for non-compliance with regulations, resulting in the bank being restricted from accepting new deposits or ‘top-ups’ from customers after March 15.
Reconstitution of PPBL Board
A recent filing with the stock exchange by Paytm reveals that PPBL has ratified the appointment of several distinguished individuals to its Board of Directors. These include Srinivasan Sridhar, former Chairman of Central Bank of India; Debendranath Sarangi, retired IAS officer; Ashok Kumar Garg, former Executive Director of Bank of Baroda; and Rajni Sekhri Sibal, former IAS officer. These individuals have been inducted as independent directors. Additionally, the board comprises Arvind Kumar Jain, former executive director of Punjab and Sindh Bank, and Surinder Chawla, an independent director and MD/CEO of Paytm Payments Bank. Vijay Shekhar Sharma’s resignation from the Board of Directors of PPBL has also been confirmed. PPBL has announced its intent to initiate the appointment process for a new chairman. Going forward, the reconstituted Board of Directors will oversee the future operations of PPBL.
Stock Market Response
On February 26, Paytm’s share price surged, hitting the upper circuit of 5 percent. This marks the sixth instance of Paytm shares hitting the upper circuit in the past seven trading sessions. The day concluded with Paytm shares closing at 427.95, reflecting a 5 percent increase on the Bombay Stock Exchange (BSE).
