Ujjivan Small Finance Bank on Thursday said its managing director and CEO Nitin Chugh has resigned citing personal reasons.

“The bank has received a letter dated August 18, 2021 from Nitin Chugh, tendering his resignation from the position of managing director and CEO of the bank w.e.f. close of business hours on September 30, 2021,” Ujjivan Small Finance Bank said in a statement to the Bombay Stock Exchange.

Chugh has confirmed in his letter that he is resigning due to personal reasons and “there are no material reasons”, the bank said. His tenure as a director of the bank, which is co-terminus with his tenure as managing director and CEO, would also end after his resignation comes into effect, the bank added.

Board rejig

The bank said it has been working for several months to strengthen its board and has appointed four individuals to that effect.

B.A. Prabhakar, ex-CMD of Andhra Bank and chairman of NSDL, has joined the board as an independent director and is being considered as a part-time chairman of the bank.

Ujjivan founder Samit Ghosh comes on board as a non-executive and non-independent director to provide insight and facilitate the reverse merger.

Sudha Suresh, who has been associated with Ujjivan for 14 years, has been appointed non-executive director and Ravichandran Venkataraman has joined as an independent director.

“The bank has recently witnessed several challenges on the business front along with several resignations both at the board level and in senior management. The immediate task of the board in collaboration with the holding company would be to bring back stability,” the bank said.

“Consequently, he shall also cease to be key managerial personnel of the bank in terms of Section 203 of the Companies Act, 2013,” the lender further noted.

The bank also said that its board has taken note of Chugh's resignation letter and has "appreciated his valuable contribution" to the board and the bank during his association.

According to Ujjivan Small Finance Bank’s 2019-20 annual report, Chug took up the role of MD and CEO from December 1, 2019 for a period of three years following the retirement of Ujjivan founder Samit Kumar Ghosh from the position of MD and CEO on November 30, 2019.

The Bangalore headquartered small finance bank in July disclosed the resignation of chief financial officer Upma Goel effective from September 30, 2021.

The bank had also disclosed that it plans to approach RBI in November with a proposal of reverse merger of the holding company with the bank to comply with the guidelines related to promoter shareholding.