IndusInd Bank to not relieve Shalabh Saxena and Ashish Damani
In a rare event of two listed firms squabbling over senior executive appointments, IndusInd Bank on Tuesday said it cannot relieve Shalabh Saxena and Ashish Damani from its subsidiary Bharat Financial Inclusion Ltd (BFIL).
It comes only a day after Spandana Sphoorty Financial Ltd (SSFL) had announced their appointments.
Referring to the announcement by the micro-lender, IndusInd Bank said as certain transactions relating to BFIL are the subject matter of a review, the presence of both Saxena and Damani at BFIL is critical to the closure of the process.
Therefore, they cannot be relieved from the services of BFIL till the review is completed.
While Saxena is the managing director and CEO of BFIL, Damani dons the role of executive director and chief financial officer.
IndusInd Bank hinted that there are non-compete clauses in their contracts which it may activate should they leave.
Earlier this month, IndusInd Bank had disclosed that BFIL had disbursed 84,000 loans without consent due to a technical glitch.
The private sector lender had initiated an independent review to see if there is any process lapse or accounting failure at its subsidiary.