Paytm Payments Bank Names Arun Bansal As New CEO; Restructures Board

Paytm Payments Bank, a subsidiary of One97 Communications (OCL), has appointed Arun Kumar Bansal as its new Managing Director (MD) and Chief Executive Officer (CEO). Bansal, previously with IDBI Bank, left his role as Executive Director and Head of Treasury at IDBI following the Reserve Bank of India's (RBI) approval of his new position. In his resignation, Bansal requested to be relieved by 25 June, aligning with the retirement of the former MD and CEO of Paytm Payments Bank, Surinder Chawla, on 26 June.

Surinder Chawla stepped down from his role at Paytm Payments Bank in April due to personal reasons. His resignation set off a wave of senior-level departures, including Bhavesh Gupta, President and COO of Paytm, who resigned in May, and Sumit Mathur, Chief Marketing Officer, who left in April after a year-long tenure. Additionally, Paytm founder Vijay Shekhar Sharma resigned as non-executive chairman of Paytm Payments Bank in March, leading to a reconstitution of the bank's board.

In response to these changes, Paytm Payments Bank has restructured its board, appointing former bureaucrats and public sector bankers as independent directors. The new board members include former Central Bank of India Chairman and MD Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Bank of Baroda Executive Director Ashok Kumar Garg, and retired IAS officer Rajni Sekhri Sibal.

These leadership changes occur amid restrictions imposed by the banking regulator, adding to the bank’s operational challenges. The internal restructuring aims to address these regulatory issues and stabilize the management structure to navigate through the ongoing hurdles.