Business News: Ujjivan may again propose to appoint Samit Ghosh as MD & CEO.
A special resolution to appoint Samit Ghosh as the chief executive officer of Ujjivan Financial Services Ltd. was defeated as he did not get the required share of votes. Ghosh, founder of Ujjivan, is currently the non-executive chairman. According to the details available on the stock exchange, Ghosh’s nomination proposal obtained only 70.5% of the votes in favor. As this was a special resolution, 75% in favor is required to pass.
Ujjivan Financial Services’ major shareholders included Aberdeen Standard Investments, NewQuest Asia Investments, International Finance Corporation, among others. The non-institutional public investor category includes high net worth investors.
Ghosh is the founder of Ujjivan Financial Services, which began operating as a non-bank microfinance lender in 2005. In 2017, he launched Ujjivan Small Finance Bank after obtaining a license. from the RBI. Subsequently, the lending business was transferred to the bank and Ujjivan Financial Services is now a holding company.
“I continue to be president of the holding. After Ittira Davis moved out from Ujjivan Financial Services at Ujjivan Small Finance Bank, I was offered to take the position of MD and CEO, “Ghosh told BloombergQuint.” Some shareholders objected to this. We will seek a permanent CEO. “
Davis stepped down as MD and CEO of Ujjivan Financial Services in March and assumed the position of part-time president of Ujjivan Small Finance Bank. After Davis’ departure, the board had supported Ghosh’s appointment as CEO and CEO of the holding.
For the quarter ended December 31, 2020, Ujjivan Financial reported a consolidated net loss of Rs 490.73 crore compared to a profit of Rs 74.97 crore a year ago. Expenses during the quarter increased due to higher devaluation costs of Rs 844.9 crore compared to Rs 32.6 crore a year ago.