Fino Paytech, the holding company of Fino Payments Bank, on Monday said changes in the composition of the bank’s board followed a policy decision on reappointment of independent directors. 

“In order to introduce fresh talent and experience to meet the evolving challenges of the market, the board of Fino Paytech decided to limit the tenure of independent directors to one term,” it said in a statement, adding that the policy decision is applicable to all companies in the group.

Its comments come after two independent directors, including the bank’s Chairman, were voted out by the promoters.

 Over 80 per cent votes, including 100 per cent by the promoters, were against the resolution for re-appointment of Mahendra Kumar Chauhan, also the Chairman, and Punita Kumar Sinha as independent directors.

Reverse merger plans

Fino Payments Bank in a separate statement said the development has no linkage to the reverse merger process. The bank had previously said that it is planning to initiate a reverse merger with its holding company in June once the RBI-mandated five-year holding period of promoters comes to an end.

Chauhan has been the Chairman of the board of Fino Payments Bank. Both Chauhan and Sinha have been on the bank’s board since 2017.

The promoters also voted against a proposal to increase the authorised share capital of the bank and alter the capital clause of its Memorandum of Association. Over 80 per cent of the votes polled were against the proposal.

Fino Paytech holds 75 per cent stake in Fino Payments Bank. Its investors include Life Insurance Corporation of India, The Blackstone Group, ICICI Bank, ICICI Lombard and Corporation Bank, amongst others.

Related Topics
comment COMMENT NOW