Ujjivan Small Finance Bank said the transition post resignation of Nitin Chugh as Managing Director and CEO is being smoothly managed in consultation with the Reserve Bank of India.

“The bank has been working for several months to strengthen the board,” it said in a statement.

Noting that the bank has recently witnessed several challenges on the business front, coupled with several resignations both at the board level and senior management, Ujjivan SFB further said, “The immediate task of bank board in close collaboration with the holding company would be to bring back stability and achieve its desired goals and growth, complete the reverse merger and see that shareholders’ interest is duly taken care of.”

“The bank looks at the future with optimism,” it stressed.

New postings

BA Prabhakar, former CMD of Andhra Bank and Chairman of NSDL, joined the Ujjivan SFB’s board as an Independent Director and is being considered as part-time Chairman of the bank.

The board of Ujjivan Financial Services has nominated Samit Ghosh, the founder of Ujjivan, as a common (non-executive, non-independent) director on the bank board to provide oversight on some critical areas like portfolio quality and people management.

“His direct involvement would also facilitate the reverse merger of the bank and holding company. Further, his long standing experience in the microfinance sector would stand in good stead in guiding the bank management to steer through the present credit crisis,” the statement said.

In a stock exchange filing on August 19, Ujjivan SFB said Chugh has tendered his resignation as MD and CEO citing personal reasons. He will step down from the role on September 30.

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