Indian tech company One97 Communications announced the exit of Surinder Chawla from the beleaguered Paytm Payments Bank. Chawla stood down from chief executive officer and managing director, citing “personal reasons”.
The company revealed that the resignation will be effective from June 26 without sharing details of the successor.
“Surinder Chawla, Managing Director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications, Paytm’s parent company, said in a regulatory filing.
One97 Communications Limited (OCL) has a 49% stake in Payments Bank.
Chawla took the reins as MD and CEO of the payments bank in January 2023. Before joining this battered PPBL, Chawla was Head of Branch Banking at RBL Bank, working on expanding the CASA base, fee revenue, and cross-selling across channels.
Chawla’s walking out came after Paytm’s chief Vijay Shekhar Sharma stepped down as non-executive chairman of Paytm Payments Bank as a part of board restructuring on foot of central bank crackdown on the fintech’s banking unit.
The Reserve Bank of India (RBI) had directed Paytm Payments Bank to cease its operations by March 15 off the back of non-compliance and supervisory concerns, setting off bleeding in Paytm’s stock. Consequently, the Bank can not credit loan money to customers through its accounts or wallets.
However, to assuage the situation, India’s payments authority – National Payments Corporation of India- permitted a third-party app license to Paytm to facilitate payments. Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will be the payment system provider banks to Paytm.
Paytm terminated almost all agreements between the company and PPBL as per a disclosure on March 1, 2024. The board of PPBL rejigged, inducting five independent directors, including an independent chairperson, and no nominees from the company let out disclosure on February 26, 2024.