InvestorQ : Why has Sachin Bansal resigned from the board of Ujjivan Small Finance Bank and will it change the fortunes of the company?
Riya Dwivedi made post

Why has Sachin Bansal resigned from the board of Ujjivan Small Finance Bank and will it change the fortunes of the company?

Answer
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rhea Babu answered.
8 months ago


If you go through the letter that Sachin Bansal has written, it does not explicitly give any specific reason as to why Sachin Bansal resigned as an independent director of Ujjivan Small Finance Bank. However, prima facie, it does look like he has resigned to avoid any conflict of interest considering that Sachin Bansal in his personal capacity has big plans in the banking and financial services sector in India. Bansal, who founded Flipkart 12 years ago before selling out to Wal-Mart last year, has said that he is resigning from Ujjivan Small Finance Bank's board in the interest of propriety and corporate governance because an entity owned and controlled by him has made an application to the RBI for a universal banking license. Thus the resignation appears to be more a case of avoiding any conflict of interest.

It may be recollected that Bansal received nearly $750 million (net of taxes) from his sale of stake in Flipkart. Thereafter Bansal, through his investment firm Navi Technologies, is focusing on the financial services sector in an aggressive manner. Navi Technologies has a microfinance arm, Chaitanya India Fin Credit which has formally approached the RBI for a universal banking licence. Bansal is also backing a number of start-ups but he has recently said in an interview that he continues to be bullish on the banking and financial services sector in India. Bansal has also roped in banking veterans like Nachiket Mor and Paresh Sukthankar to help him drive the venture.