- March 3, 2021 – Nitin Gupta, Chief Auditor Officer resigns and eventually moves to Equitas Small Finance Bank
- July 14, 2021 – Alok Gupta, Chief Risk Officer resigns. Disclosed by the Company only on August 29, 2021 supposedly after their inability to try retain him back
- August 31, 2021 – Sumit Dhir, Head Internal Audit at Jaipur HO resigns
I am not too bothered about the names but surely about the positions. All positions relate to the internal risk control and any investor would feel jittery.
Result – stock dropped sharply on August 31, 2021 – closing down 13% over the previous day.
Management did provide some clarifications that all is well and churn is purely due to the personal reasons. However, this Company now will be watched very closely by the investors and it’s not going to be easy to get the investors confidence back in a hurry.
I would not like to hazard a guess on the exact reason for the churn on either side – neither that it is normal course nor that AU’s internal control system are very poor.
There can be multiple reasons for the exit including – poor HR policies during Covid period, blame game over the deteriorated asset quality, personal reasons or even books management.
One should definitely keep the developments in the Company closely under watch and strategise his investment accordingly.