New Delhi, May 20 (PTI) Ittira Davis, who was appointed as additional director and part-time chairman of Ujjivan Small Finance Bank, subject to the approval of RBI, has resigned following a regulatory change, the company said.

The bank has also initiated the process of identification of a candidate for the position of part-time chairman, it added.

On March 13, the lender had informed the exchanges through a letter that its board has appointed Davis as an additional director (non-executive, non-independent) and part-time chairman (non-executive, non-Independent) of the bank, subject to the approval of RBI.

This followed the resignation of incumbent part-time chairman Biswamohan Mahapatra.

"The board of the bank has taken note of the aforesaid letter and his resignation from the bank's board," the lender said in a filing to BSE on Thursday.

Ujjivan Small Finance Bank had made an application to RBI for the approval.

"Bank has received a letter dated May 20, 2021 from Ittira Davis wherein he has mentioned that he had joined the Bank as Additional Director (Non-Executive, Non-Independent) to take on the role of Part-Time Chairman of the Board subject to approval of RBI.

"However, on April 26, 2021, the RBI issued a circular...on Corporate Governance in Banks-Appointment of Directors and Constitution of Committees of the Board. The said circular requires that 'The Chair of the Board shall be an Independent Director," the filing said.

In order to ensure a proper handover, the resignation shall be effective from July 23, 2021, it added.

Davis, in his resignation letter, said the regulatory change necessitates that he resigns as additional director since he shall no longer be able to take on the role of part-time chairman.

"Consequently, on July 23, 2021, I shall also cease to be a member of various board committees of the bank," he said in the resignation letter.

The lender further said considering the resignation and RBI circular, the board of the bank has resolved to withdraw the application made to RBI for the appointment of part-time chairman (non-executive, non-independent) of the bank.

"The Bank shall write to RBI for withdrawal of application in due course," it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)