Chennai: Indian Bank has formally informed the stock exchanges that Mr. Pradeep Kumar Malhotra, a Shareholder Director on the Bank’s Board, has resigned from his position effective November 28, 2025.
His resignation comes in the wake of a directive from the Reserve Bank of India (RBI) issued on July 30, 2025, which restricts current employees of the Life Insurance Corporation of India (LIC) from serving as Shareholder Directors in Public Sector Banks engaged in para-banking activities. This directive aligns with Para 4.3(iv)(b) of the RBI Master Direction on ‘Fit & Proper’ Criteria for Elected Directors on the Boards of PSBs (2019, updated 2020).
RBI Directive and Fit & Proper Criteria
The RBI’s communication clarified that the updated Fit & Proper criteria prohibit LIC employees from holding positions as Shareholder Directors in PSBs. The regulation is aimed at ensuring independent governance and avoiding potential conflicts of interest in the banking sector, particularly in areas overlapping with para-banking operations.
Resignation and Disclosure to Exchanges
Mr. Malhotra submitted his resignation on November 28, 2025, and ceased to hold the directorship immediately. Indian Bank has sent the resignation letter and the necessary confirmations to both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in compliance with SEBI Listing Regulations.
The disclosure confirmed that the resignation is solely due to RBI’s Fit & Proper criteria restrictions. Mr. Malhotra did not cite any other reasons and does not hold directorships in any other listed entities.
Mr. Malhotra’s Contributions
In his resignation letter, Mr. Malhotra expressed gratitude for the opportunity to serve on the board of Indian Bank. He highlighted his contributions to technology adoption, governance initiatives, and financial market development during his tenure as Shareholder Director.
About Indian Bank
Indian Bank is a leading public sector bank headquartered in Chennai, providing a wide range of financial services, including retail banking, corporate banking, and digital banking solutions. The bank continues to strengthen its governance and operational frameworks while expanding its reach across India.
Read also: Indian Bank Shifts Official Website to ‘.bank.in’ Domain, Strengthening Cybersecurity Measures
