Citing to the conflict of interest, Flipkart ex-CEO and Co-founder Sachin Bansal has announced that, “It has resigned as an independent director of Ujjivan Small Finance Bank board.”
In a filing to the stock exchange, the bank stated that “Mr. Bansal has confirmed that he is resigning from the Bank‘s Board in the interest of the property 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.”
In September 2019, Sachin Bansal joined the board by acquiring majority shares of microfinance company Chaitanya India Fin Credit.
A Letter by Sachin Bansal to Ujjivan Small Finance 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 the necessary intimation with the regulatory authorities.
Yours faithfully,
Sachin Bansal