Money & Banking

IndusInd Bank board yet to decide on Shalabh Saxena, Ashish Damani’s resignation from Bharat Financial Inclusion

Our Bureau | | Updated on: Nov 29, 2021
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The lender is reviewing disbursal of nearly 84,000 loans without customer consent due to a technical glitch at the microfinance subsidiary

The top honchos of Bharat Financial Inclusion Ltd — Shalabh Saxena and Ashish Damani — have resigned from their positions but the board has decided to defer the consideration of the decision to relieve them until an ongoing review is completed, IndusInd Bank said on Monday.

A review of disbursal of nearly 84,000 loans without customer consent due to a technical glitch at BFIL is at present going on at the microfinance company.

“Shalabh Saxena and Ashish Damani, currently employed with BFIL in the capacity of the Managing Director and CEO and the Executive Director and CFO, respectively, have tendered their resignations pursuant to e-mails addressed to the Chairman of the Board of BFIL on November 25, 2021,” the private sector lender said in a stock exchange filing on Monday.

IndusInd Bank objects to Saxena, Damani joining Spandana Sphoorty

The announcement comes after Spandana Sphoorty (SSFL) had on November 22 announced the appointment of Saxena as its new Managing Director and CEO and Damani as the President and Chief Financial Officer.

BFIL is the wholly owned microfinance subsidiary of IndusInd Bank.

Global audit firm

Both of them have offered to assist in the ongoing review of transactions related to BFIL, for which the bank has appointed an international audit firm to conduct independent review and ascertain the veracity of the anonymous complaints, the bank further said.

“The board of BFIL has deferred consideration of the decision to relieve them until the completion of the ongoing review,” IndusInd Bank said.

The lender has nominated J Sridharan as Executive Director on the Board of BFIL and appointed Srinivas Bonam to oversee the day-to-day functioning of BFIL, it further said.

“MR Rao continues to be associated as an advisor to BFIL bringing his years of experience in microfinance and scaling up BFIL,” IndusInd Bank said, adding that it has also appointed KV Rao, who is the former Chief Operating Officer and Head Member Services for 11 years at BFIL, as an advisor for strengthening the field processes.

Previously, on November 23, the bank had said that Saxena and Damani had not yet resigned from BFIL and had cited a non-compete clause in their contracts that prohibited them from accepting employment at a competitor of the microfinance company.

Published on November 29, 2021

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