SBM India CEO Resigns Before Term Ends

Sidharth Rath, the Head of State Bank of Mauritius (India), has decided to step down from his position before the scheduled end of his five-year contract in December.

This move comes alongside a desire for new leadership from the board to reassess the business model due to challenges faced by the bank over the past year, including restrictions by the Reserve Bank of India.

Under Rath’s leadership, the business grew nearly tenfold in two years, with the customer base expanding to 5 million from 2,000.

However, SBM India faced challenges after RBI’s actions against non-bank prepaid instruments in August 2022, affecting around six million buy now pay later (BNPL) customers.

Deposits crossed $950 million, while the loan book was at $650 million. Net non-performing assets fell to below 1%.

In a statement published on the Stock Exchange of Mauritius (SEM), the Board of Directors of SBMBI said it has accepted Sidharth Rath’s resignation.

“Mr. Sidharth Rath shall continue to carry out the duties as Managing Director and CEO till the close of business hours on 16 November 2023, subject to the approval of the Reserve Bank of India,” it said.

An application has also been made to the RBI for the approval of the appointment of the new Managing Director & CEO.

Source: Live Mint