Flipkart co-founder Sachin Bansal has resigned as an independent director from Ujjivan Small Finance Bank. Sachin said this was in the interest of propriety and corporate governance as he has applied with the Reserve Bank of India (RBI) for a universal banking licence.
In an intimation to the stock exchanges by Ujjivan Small Finance Bank, Sachin Bansal stated, “I would like to resign as an independent director of the bank with effect from January 27, 2020. Consequently, I shall also 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 | stepped down from this role.”
Sachin Bansal joined the board of Ujjivan Small Finance Bank in May, 2019.
The Flipkart co-founder was very clear that there was no material consideration for the 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,” Sachin Bansal said in a letter to the exchanges.
Following his departure from Flipkart, Sachin Bansal has placed strong bets in the financial services sector. Through his investment firm Navi Technologies, he picked up a majority stake in the non-banking financial company (NBFC) Chaitanya Rural Intermediation Development Services (CRIDS) in September last year by investing Rs 739 crore. CRIDS is a wholly-owned subsidiary of Chaitanya India Fin Credit Private Limited (CIFCPL).
He has also applied for a universal banking licence with the RBI. Besides this, he has bought out Essel Mutual Fund and DHFL General Insurance. There were also investments into treasury operations of Piramal Enterprises, which include venture debt and debt papers.
Recently, International Finance Corporation, the arm of World Bank, had announced the investment of Rs 210 crore in Navi Technologies, picking up 4.5 percent stake.
(Edited by Megha Reddy)