IndoStar Capital Chief Executive Deep Juggi Quits After Short Stint

Deep Juggi, chief executive officer, at a Brookfield Private Equity backed IndoStar Capital Ltd, has resigned after a short stint lasting just over a year, citing personal reasons.

It elevated Karthikeyan Srinivasan, the Chief Risk Officer (CRO) at Indostar, as CEO to succeed Jaggi. Srinivasan joined as CRO in May 2022 and has been responsible for reviewing policies, assessing the impairment of assets and changes to processes to reduce risks to assets. It also appointed new chief financial Officer Vinod Panikar in December 2022.

Its stock closed 1.8 per cent lower at Rs 147.65 per share on BSE.

Jaggi was made chief executive in January 2022 after R Sridhar, then its executive vice chairman, decided to step down on completing a five-year term in April 2022. Prior to his elevation, Jaggi was chief business officer with IndoStar.

IndoStar in response to queries from Business Standard said Jaggi’s resignation, which was for personal reasons, was duly deliberated and considered by the Nomination and Remuneration Committee and the Board. He has agreed to assist the Company for the next three months to ensure smooth transition.

In May 2022, the company had detected lapses like a deviation from policies for sanctioning loans and control deficiencies in the commercial vehicle loan (CV) portfolio. It began review of CV and SME loan portfolio and has made provisions.

“The company had taken appropriate provisions in the business for the concerned portfolio in Q4 FY22 post which no further provisions are seen to be required. We have seen reversals of these provisions in the last three quarters, indicating that the provisions made were conservative”, IndoStar said in response.

On Query about any RBI’s regulatory action, IndoStar said like any other regulated entity, the Company engages with the Reserve Bank of India periodically including providing them updates on various matters concerning the Company. It, however, did not elaborate on directions from the regulator.

The company reported a consolidated net profit of Rs 36.7 crore for Q3 FY23. IndoStar’s Assets Under Management (AUM) stood at Rs 7,669 crore and Capital Adequacy at 33 per cent on a standalone basis. The company’s Debt/Equity ratio stands at 1.8 times.

Its stock closed 1.8 per cent lower at Rs 147.65 per share on BSE.