Hinduja-owned IndusInd Bank, under attack from whistleblowers for evergreening of loans at the bank's wholly-owned microfinance subsidiary, has seen two key people -- Shalabh Saxena, Managing Director and Chief Executive Officer and Ashish Damani, Executive Director and Chief Financial Officer at the subsidiary, trying to make a quiet exit from the microfinance unit.
The bank has said that "certain transactions relating to microfinance subsidiary Bharat Financial Inclusion Limited (BFIL ) are subject matter of an ongoing review and the continued employment of Saxena and 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," said the bank. In fact, the bank has sought an independent review to see if there is any process lapse or accounting failure at BFIL. The banking regulator, the Reserve Bank of India (RBI), too, is monitoring the developments at the bank.
Both the professionals are currently employed with the bank’s wholly-owned subsidiary, BFIL, which is facing serious allegations of evergreening of loans by whistleblowers. While strongly denying the allegations, the bank had earlier said that "all the loan products managed by BFIL in the capacity of a Business Correspondent, are approved by the bank and are fully compliant with extant regulatory guidelines".
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