In a significant development at Poonawalla Fincorp Ltd., Chief Technology Officer (CTO) Dhiraj Saxena has resigned, citing harassment and unnecessary interventions from the company’s Chief Human Resources Officer (CHRO). Saxena's resignation letter, which was submitted on September 6, officially took effect on December 3, 2024. The regulatory filing released late Friday confirms the resignation and outlines the reasons behind his departure.

Harassment Allegations by the CTO

In his resignation letter, Saxena expressed that the harassment from the CHRO had severely impacted his ability to manage the company’s IT functions effectively. Saxena stated that his efforts to collaborate and maintain a smooth working relationship had been undermined by the CHRO’s interventions, which not only disrupted his leadership but also created unrest within the IT team. The IT team’s performance, Saxena mentioned, was directly affected by this conflict.

His letter reads, “Harassment and unnecessary interventions from the CHRO were hindering my ability to manage IT functions effectively. This is creating unrest in the team and affecting the overall delivery. Despite my best efforts to collaborate, it seems it is not in line with the HR policy.” Saxena's statement reveals deeper concerns about the workplace culture and the challenges faced in resolving conflicts in a timely and effective manner.

Leadership Transition Amid Tensions

Saxena's resignation comes during a period of significant leadership transitions at Poonawalla Fincorp. Arvind Kapil, previously with HDFC Bank, took over as Managing Director and Chief Executive Officer (CEO) in June 2024. Soon after, Harsh Kumar was appointed as CHRO in July 2024. The new appointments and organizational restructuring have sparked concerns and disruptions within the company, with some reports suggesting that Kapil has brought in his own set of personnel, further complicating the situation.

The departure of a senior leader like Saxena, particularly under such contentious circumstances, casts a spotlight on the company’s internal dynamics and leadership challenges. This situation raises questions about the company's approach to conflict resolution and how it manages internal relations, especially at senior levels.

Impact of the Resignation on Company Culture

The resignation of Dhiraj Saxena under such tense circumstances could be indicative of deeper organizational issues at Poonawalla Fincorp. Workplace culture plays a vital role in a company's ability to foster collaboration and ensure effective leadership. Saxena’s claims suggest that the company's internal processes may need a closer look, particularly in terms of employee engagement, conflict management, and ensuring a supportive work environment for leadership.

This resignation also raises critical questions about the company's ability to retain top talent, especially amidst leadership changes and evolving organizational structures. The unresolved issues cited by Saxena could point to larger systemic challenges that need to be addressed to ensure the company’s growth and stability in the future.

Despite the resignation, Poonawalla Fincorp has not yet issued an official statement responding to Saxena's allegations. Regulatory filings confirm compliance with SEBI disclosure requirements, but no formal acknowledgment of the claims or the reasons behind Saxena's resignation has been made public by the company.

A Glimpse into the Company’s Transformation

The company, formerly known as Magma Fincorp, rebranded to Poonawalla Fincorp after being acquired by Adar Poonawalla's Rising Sun Holdings in July 2021. Since the acquisition, the company has positioned itself as a leading player in the non-banking financial sector. Saxena's resignation, however, marks a challenging moment in the company’s journey, especially as it continues to transition into its new role in the financial landscape.

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