Paytm Payments Bank revamps board, Sharma steps down as Chairman

Vijay Shekhar Sharma has resigned as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), leading to a restructuring of the bank’s board, according to a filing on Monday. The development comes amidst the Reserve Bank of India’s stringent measures against Paytm Payments Bank due to persistent non-compliance issues and ongoing supervisory concerns.

The recent regulatory action by the RBI barred PPBL from accepting new deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, later extending the deadline to March 15.

In a release on Monday, One 97 Communications informed that PPBL has appointed a new Board of Directors, including 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, as Independent Directors. They have recently joined as Independent Directors, it elaborated.

One97 Communications Ltd (OCL) is the owner of the Paytm brand. One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake in the bank.

OCL said it supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee.

Srinivasan Sridhar brings with him an illustrious career in banking spanning over 40 years, the release said adding 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.

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

A retired IAS officer of Haryana cadre (1986 batch) with 38 years of experience in administration and governance, Sibal has served as Secretary in Government of India.

Currently, she serves as an Independent External Monitor in the Public Sector and as an Independent Director in Corporates.

Garg brings almost four decades of diverse banking experience and 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 and Tobago and Kenya.

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

Paytm Payments Bank CEO Chawla welcomed the appointments saying it marked a significant step forward in PPBL’s journey.

As per the website of Paytm Payments Bank (PPBL), it has 30 crore wallets and 3 crore bank customers