Vijay Shekhar Sharma steps down from Paytm Payments Bank's Board

Vijay Shekhar Sharma has stepped down from the Board of Paytm Payments Bank Ltd (PPBL) and will no longer be its part-time non-executive chairman as the beleaguered bank reconstitutes its board of directors.

"The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the fintech said in a regulatory filing.

For the newly constituted board, PPBL has opted for only independent and executive directors.

The new board members are Srinivasan Sridhar, Debendranath Sarangi, Ashok Kumar Garg, and Rajni Sekhri Sibal.

Sridhar has chaired the Export-Import Bank of India, the Central Bank of India, and the National Housing Bank, among others. Sarangi is a retired IAS officer currently serving as an independent director on the boards of multiple firms. Sibal is also a retired IAS officer who served as a secretary of the central government. Garg has held various senior positions within Bank of Baroda, including Whole-Time Director, Chief Executive for US operations, and Managing Director of Bank of Baroda (Uganda).

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Beyond these, the board has former Executive Director of Punjab & Sind Bank Shri Arvind Kumar Jain as independent director, and Surinder Chawla, MD and CEO at Paytm Payments Bank.

"Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices," Chawla said in the filing.

In January, the RBI directed PPBL to stop accepting new deposits from February 29, 2024, due to "persistent non-compliances" and "continued material supervisory concerns". The deadline was later extended to March 15.