IndusInd Clarifies On Saxena, Damani Appointments, Says They Are Part Of Subsidiary

IndusInd Bank has clarified that Shalabh Saxena Ashish Damani are part of its subsidiary Bharat Financial Inclusion (BFIL).

"This is in reference to the press release issued by Spandana Sphoorty Financial Limited (SSFL) on the purported appointment of Mr. Shalabh Saxena as MD & CEO and Mr. Ashish Damani as Chief Financial Officer of SSFL. Neither, Saxena nor 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.

Moreover, as per their contractual terms of employment, Mr. Shalabh Saxena and Mr. Ashish Damani are also prohibited from accepting employment at a competitor of BFIL (such as SSFL), unless approved in writing by the Board of BFIL. As stated above, as resignation from BFIL has not been tendered to the Board by Mr. Shalabh Saxena and/or Mr. Ashish Damani, any purported acceptance by them of employment at SSFL would be in contravention of the terms of their employment with BFIL.

Further, note that, as previously intimated to the Stock Exchanges on November 6, 2021, certain transactions relating to BFIL are subject matter of an ongoing review and the continued employment of Mr. Shalabh Saxena and Mr. Ashish Damani at BFIL is critical to the closure of such process. Accordingly, they cannot be relieved from the services of BFIL, until completion of the said review," the bank said in a release to the exchanges.