After a string of regulatory crackdowns and a decline in shareholder value, the company has changed its strategy.
In addition, OCL made significant changes to the board of directors of the payment bank in an effort to forestall the bank's liquidation, which would have been the result of persistent failure to comply with regulatory standards.
PPBL's board was reconstituted with the appointment of 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 officer Rajni Sekhri Sibal, the parent informed stock exchanges They were all new independent directors.
OCL also withdrew their PPBL board nominee.
“PPBL has informed us that they will commence the process of appointing a new chairman,” OCL filed.
Along with the new appointees, the PPBL board contains former Punjab & Sind Bank Executive Director Arvind Kumar Jain as Independent Director and MD & CEO Surinder Chawla.
In a statement, PPBL MD & CEO Surinder Chawla said the appointments are a major milestone.
"Their [the board members'] distinguished expertise will guide us toward improving our governance structures and operational standards, solidifying our commitment to compliance and best practices," he said.
Srinivasan Sridhar, PPBL Board Member, said, “It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to stakeholders, in strict adherence with regulatory frameworks and best practices.”
Debendranath Sarangi, PPBL Board Member, said, "I'm taking on this bigger role at a very important time for PPBL, and my commitment is to upholding and going beyond the highest standards of regulatory compliance and corporate governance."
"I am fully committed to using my skills to lead PPBL to a future marked by operational excellence, strict adherence to regulatory guidelines, and the growth of a culture of best practices," he said. Even with these changes, PPBL would still be regulated. OCL stock went up 4.99% on Monday, ending the day at ₹427.95 on the BSE.