IndusInd Bank, Spandana Sphoorty in a tussle over CEO, CFO appointment

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November 24, 2021 12:30 AM

IndusInd Bank also clarified that Ashish Damani, who is serving as executive director and chief financial officer of BFIL has also not resigned. Spandana Sphoorthy had issued a release on Monday naming Damani as the president and chief financial officer of the company.

Spandana Sphoorty is yet to declare its July-September earnings due to recent change in management after founder Padmaja Gangireddy resigned.Spandana Sphoorty is yet to declare its July-September earnings due to recent change in management after founder Padmaja Gangireddy resigned.

A day after Spandana Sphoorty Financial announced the appointment of Shalabh Saxena as the new the chief executive officer, IndusInd Bank has clarified that Saxena has not tendered his resignation yet as the managing director (MD) and chief executive officer (CEO) of Bharat Financial Inclusion (BFIL).

IndusInd Bank also clarified that Ashish Damani, who is serving as executive director and chief financial officer of BFIL has also not resigned. Spandana Sphoorthy had issued a release on Monday naming Damani as the president and chief financial officer of the company.

“Neither, Mr. Shalabh Saxena nor Mr. Ashish Damani have tendered their resignation from the services of BFIL. As per the terms of their employment, once the resignation is tendered, it is subject to acceptance by the Board of Directors of BFIL (Board). Upon acceptance by the Board, a specified notice period is also required to be served. However, as neither of them have tendered their resignations to BFIL, such due process has not been initiated,” IndusInd Bank said in an exchange filing.

IndusInd Bank said as per contractual terms of employment, both Saxena and Damani are prohibited from accepting employment at a competitor of BFIL, such as Spandana Sphoorty, unless approved in writing by the Board of BFIL. Thus, any purported acceptance by the duo of employment at Spandana Sphoorty would be in contravention of the terms of their employment.

Further, certain transactions relating to BFIL are subject matter of an ongoing review and the continued employment of Saxena and Damani at BFIL is critical to the closure of this process, IndusInd Bank said, adding that the two executives cannot be relieved from the services of BFIL, until completion of the said review.

Spandana Sphoorty is yet to declare its July-September earnings due to recent change in management after founder Padmaja Gangireddy resigned.

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