Paytm Payments Bank CEO and MD Surinder Chawla resigns citing ‘personal reasons’

Surinder Chawla, CEO and MD of Paytm Payments Bank, resigned on Tuesday, April 9. In an exchange filing, Paytm parent One97 Communications Ltd said that Chawla has tendered his resignation on “account of personal reasons and to explore better career prospects.”

Chawla will be relieved from the company on June 26, 2024, the fintech company informed the stock exchanges.

Chawla’s exit comes a few months after Paytm CEO Vijay Shekhar Sharma had stepped down as the non-executive chairman and board member of Paytm Payments Bank.

The Reserve Bank of India imposed regulatory measures on Paytm Payments Bank and restricted it from accepting new deposits and engaging in credit transactions beyond March 15.

One 97 Communications said, “Nearly all agreements between the company and PPBL have been terminated as per our disclosure on March 1, 2024, and the board of PPBL has been reconstituted with five independent directors including an Independent chairperson, and no nominees from the company, as per our disclosure on February 26, 2024.”

The filing added that in line with its ongoing efforts, the company continues to collaborate with banking partners to enhance merchant acquiring and UPI services.

In March 2024, Paytm Senior VP Praveen Sharma resigned to “pursue other opportunities.”

Paytm Payments Bank Limited also reconstituted its Board of Directors in February. The appointments included former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg and retired IAS Rajni Sekhri Sibal. They all joined the board as independent directors.

Shares of One97 Communications Ltd closed at ₹404.2, down 1.94%, on the NSE.