Managing Director Sidharth Rath Resigns from SBM Bank India
- ByStartupStory | November 3, 2023
Sidharth Rath, Managing Director and Chief Executive Officer of SBM Bank India has stepped down from his role. This decision was confirmed through a communique issued by SBM Holdings Ltd., the bank’s holding company.
The communique stated, “SBM Holdings Ltd, the ultimate holding company of SBM Bank IndiaLimited (SBMBI), wishes to inform its shareholders and the public in general that Mr Sidharth Rath, Managing Director & CEO of SBMBI, vide his letter dated 12 October 2023, has tendered his resignation. The Board of Directors of SBMBI, at its meeting held on 12 October 2023, has accepted the resignation,”
SBM Bank (India) has submitted an application to the RBI for approval of the appointment of a new Managing Director and CEO, although the identity of the new appointee is currently undisclosed.
In the interim, Dipak Agarwal, the head of corporate banking, has been appointed as the deputy CEO and head of business. It’s noteworthy that Rath’s departure is occurring a year ahead of the scheduled expiration of his tenure. Having previously worked at Axis Bank for over 17 years, Rath joined SBM in 2018 as MD and CEO, with his tenure initially set to end in November 2024.
This development hints at a forthcoming leadership overhaul within the bank. SBM Bank had been a favored choice for partnerships with over 40 fintech firms for co-lending, credit cards, Buy Now Pay Later (BNPL) services, and foreign stock investments. However, the bank faced controversies and regulatory scrutiny over the past year, impacting its collaborations with fintech partners.
SBM Bank was temporarily suspended from facilitating international transactions under the Liberalized Remittance Scheme due to supervisory concerns. Although some relaxation was later provided, the bank faced additional scrutiny regarding re-KYC issues on corporate credit card accounts backed by fintech partners.
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Furthermore, it extended its prepaid payment instruments (PPI) license to various fintech firms, but these partnerships faced challenges following the RBI’s new digital lending norms, prompting a reevaluation of collaborations with the bank.
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