RBI approves Furtado as interim CEO at UjjivanSFB

On August 31, 2024, the Reserve Bank of India (RBI) approved Ujjivan Small Finance Bank executive director Carol Furtado to serve as interim chief executive officer following the sudden resignation of managing director and CEO Sanjeev Nautiyal. The RBI stated that Furtado's appointment would last for three months or until a new CEO is appointed, whichever comes first.

Nautiyal resigned due to health issues. Just prior to his departure, he sent an email to the bank stating his intention to step down early. Nautiyal joined Ujjivan as its MD & CEO on July 1, 2024, for a three-year term.

At a board meeting on Tuesday, Ujjivan's board accepted Nautiyal's early retirement request and approved Furtado as interim CEO, according to a regulatory filing with the stock exchanges. The bank said it would begin the process of identifying Nautiyal's successor and submit its recommendation to the RBI in due course.

Following the development, Ujjivan Small Finance Bank's shares dropped 5.4% to Rs 65.40 on the BSE, as investors sold the stock. The bank's officials expressed the desire for better succession planning in the future.

Nautiyal, a former managing director of State Bank of India, took charge of Ujjivan Small Finance Bank on July 1, 2024, for a three-year term. The bank, seeking to diversify its business and reduce its reliance on unsecured microfinance loans, received approval from the RBI to become a universal bank in April. However, it had to further diversify its business to meet the regulator's expectations.