Sachin Bansal has resigned as an independent director of Ujjivan Small Finance Bank. The Flipkart co-founder said that he is resigning from Ujjivan Small Finance Bank’s board “in the interest of propriety and corporate governance as an entity owned and controlled by him has made an application to the Reserve Bank of India for a universal banking license.”
He said that there is no other material reason for his resignation.
Bansal, through his investment firm Navi Technologies, is focusing on the financial services sector. Navi Technologies’ microfinance arm, Chaitanya India Fin Credit Pvt. Ltd (CIFCPL), has formally approached the Reserve Bank of India (RBI) for a universal banking licence. Bansal founded Navi Technologies after moving out of Flipkart in May 2018, following the homegrown e-commerce major’s takeover by global retailing giant Walmart. He also backed several tech startups across sectors.
Ujjivan Small Finance Bank shares were trading 0.6% higher at ₹54.85.
Here is the full text of his letter to Ujjivan Small Finance Bank board
Dear Board Members,
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 license, I felt it was — in the interest of propriety and corporate governance — only appropriate that I stepped down from this role.
I take this opportunity to place on record my appreciation for the support extended to me by the Board during my tenure. It has been a sincere pleasure to serve on the Board and I wish the management of the Bank every success.
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.
Please take this letter on record and file necessary intimation with the regulatory authorities.