Sachin Bansal steps down as Ujjivan Small Finance Bank director; here’s why

Sachin Bansal steps down as Ujjivan Small Finance Bank director; here's why

Sachin Bansal has resigned as independent director of Ujjivan Small Finance Bank in the interest of propriety and corporate governance after an entity owned by him submitted an application to the Reserve Bank of India for a universal banking licence. Within four months of acquiring a majority stake in Chaitanya India Fin Credit, Flipkart co-founder Sachin Bansal-led microlender had applied for a universal banking licence on January 10.

In his letter to the Ujjivan Small Finance Bank board, Bansal said he would cease to be a member of various board committees of the bank. “Given an entity owned and controlled by me has made an application to the RBI for a universal banking licence, I felt it was – in the interest of propriety and corporate governance – only appropriate that I stepped down from this role,” letter said.

“I take this opportunity to place on record my appreciation for the support extended to me by the Board during my tenure. It has been a sincere pleasure to serve on the Board and I wish the management of the Bank every success,” he said.

He also stated that there’s no other reason for his resignation.

“Further, as required under Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, I hereby confirm that there are no other material reasons for my resignation as an Independent Director of the Bank other than those stated above,” the letter said.

Ujjivan Small Finance Bank shares were trading 0.6 per cent higher at Rs 54.85 on Tuesday.

Bansal had acquired Chaitanya in September last year with an investment commitment of Rs 739 crore. If given a licence, Chaitanya will be the second microlender after Bandhan Bank to be granted a universal banking licence.

Other microlenders operate as small finance banks. Chaitanya was founded in 2009 and operates 40 branches in Karnataka, Bihar, Maharashtra, Rajasthan and Jharkhand.