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Infosys CFO Ranganath resigns, search for successor soon

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Ranganath

Bengaluru, Aug 18 (IANS) Infosys Chief Financial Officer (CFO) M.D. Ranganath has resigned and will continue in the executive post till November 16, the IT major said on Saturday.

“The Board of Directors accepted the resignation of Ranganath as the CFO and key managerial personnel. He will continue in the post till November 16. The Board will soon search for the next CFO,” said the city-based software firm in a statement here.

Claiming that he resigned to pursue professional opportunities in new areas, Ranganath said he had an 18-year successful career in the $10.9-billion global firm and as its CFO for the past three crucial years.

“I am grateful to the iconic firm for giving me an opportunity to serve as CFO. I am also proud that during its critical phase, we delivered strong financial outcomes, strengthened its competitive position and enhanced the value of its stakeholders,” said Ranganath in the statement.

Ranganath, 55, is the third CFO to leave Infosys in the last six years after then CFO V. Balakrishnan was elevated to the Board as a Director and head of the company’s back office operations (Infosys BPO) in October 2012.

Balakrishnan left Infosys subsequently in December 2013.

Rajiv Bansal, who succeeded Balakrishnan in November 2012, resigned from the high-profile executive post in October 2015 amid a raging controversy over governance issues between the company’s co-founders and previous Board of Directors.

Infosys co-founder N.R. Narayana Murthy also objected to the hefty severance package given to Bansal, who was a party to the “costly” acquisition of the US-based Panaya software firm in February 2015 under the company’s first non-promoter Chief Executive Vishal Sikka, who too resigned on August 18, 2017.

According to the company’s 37th annual report, Ranganath’s annual compensation in fiscal 2017-18 was Rs 7.98 crore, including Rs 7.03 crore as salary, Rs 24 lakh as retrials and 71 lakh shares as stock options.

Ranganath, who owned 9,256 shares at the beginning of fiscal 2017-18, exercised 7,662 shares and held 16,918 cumulative shares at the end of last fiscal.

Commenting on the CFO’s contribution, co-founder and Board Chairman Nandan Nilekani said Ranganath had played a pivotal role in the company’s growth and success.

“During his 18-year long stint, I have seen Ranganath in leadership roles and delivering results with distinction. With him as CFO, the company had resilient financial performance, implemented capital allocation policy and earned respect of stakeholders for enhanced value creation,” said Nilekani.

Chief Executive Salil Parekh said that he worked with Ranganath over the past few quarters in shaping the company’s strategic direction.

“I admire Ranganath’s financial acumen, understanding of the company’s business and ability to deliver results. He played a crucial role and provided leadership. I am confident he will ensure a smooth transition,” added Parekh.

In a separate statement, Narayana Murthy said that Ranganath had worked with him for over 15 years and found him to him to be one of the best CFOs in the country.

“Ranganath’s ability to take tough decisions in challenging situations, his financial expertise, strong value system, unfailing courtesy and flawless execution always distinguished him as an exemplary leader and a key asset for Infosys,” said Murthy.

Lauding Ranganath for raising investor confidence in the company during the last five years by managing costs and margins, Murthy said the outgoing CFO was a rare individual who understood all stakeholders, including clients, delivery teams, employee aspirations, finance, investors, governance, law and the role of an ethical business.

“Ranganath is everything the idea of Infosys has always stood for. His departure is an irreplaceable loss for the company at this critical juncture. I wish him the best in his future endeavours, Murthy said.

As part of the leadership team, Ranganath has played key roles in consulting, finance, strategy, risk management and M&A (mergers and acquisitions) and worked with the board and its committees in formulating and executing the firm’s strategic priorities.

Ranganath was also the company’s chief risk officer from January 2008 to July 2013.

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No bail-out for Jet Airways: Suresh Prabhu

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New Delhi, Nov 19 : The Centre on Monday said it would not bail out cash-strapped Jet Airways, stating that it’s the responsibility of the management to implement policies to ensure financial stability and a smooth functioning of the airline.

According to Civil Aviation Minister Suresh Prabhu, the government looks at sector-specific issues in the current deregulated policy environment.

Prabhu was answering questions on a possible bail-out package for the private airline at the launch event of the upgraded version of “AirSewa 2.0 web portal and mobile app” here.

Civil Aviation Secretary R. N. Choubey said the airline wanted some time to pay charges levied by airport operators.

Choubey said the issue had to be sorted out between the airline and airport operators and that the ministry has no role in such commercial deliberations.

Currently, the airline is facing financial troubles due to an increase in jet fuel prices, a weaker rupee, and low fares.

On November 16, Tata Sons, the holding company of the Tata Group firms, said discussions on acquiring a stake in the financially-troubled airline were at a preliminary stage.

On Air India’s financial woes, Choubey said the airline was being given support from “time to time”.

He further said that the airline’s performance was being monitored.

Last month in Hyderabad, the secretary had said that a revival package for the debt-ridden national carrier had nearly been finalised and that the government was providing all support to Air India to ensure that it remained a viable entity.

On August 7, Parliament had approved the gross additional expenditure of Rs 980 crore for equity infusion into the heavily indebted airline.

(IANS)

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RBI to pump liquidity worth Rs 8,000 cr on Nov 22

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RBI Governor Urjit Patel

Mumbai, Nov 19 : The Reserve Bank of India (RBI) would inject Rs 8,000 crore into the market by purchasing government securities on November 22, 2018.

The decision comes amid concerns of a liquidity crisis in the economy after the financial services company IL&FS reported defaults in September.

“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of…

“Government securities under Open Market Operations for an aggregate amount of Rs 80 billion on November 22, 2018 through multi-security auction using the multiple price method,” the RBI said in a statement on Monday.

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Sensex jumps amid bets of RBI-government truce

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Sensex equity Nifty

Mumbai, Nov 19: Key equity indices jumped amid bets the government and the Reserve Bank of India will bury their differences at a crucial central bank board meeting on Monday.

Subdued global oil prices, and foreign fund inflows amid a stable domestic currency also burnished the appeal of stocks.

The government has been demanding that the RBI make liquidity available, especially to the shadow banks after a series of defaults by the Infrastructure Leasing & Financial Services (IL&FS) triggered a scare and precipitated a credit crunch.

The Centre has also reportedly demanded that the RBI hand over a significant chunk of its reserves, which was subsequently denied by the Union Finance Ministry as “misinformed speculation”.

RBI Deputy Governor Viral Acharya had warned of economic consequences if the central bank’s autonomy was encroached upon.

Interest-rate sensitive stocks like banking, automobile and capital goods rose, while the oil and gas sector came under pressure.

The S&P BSE Sensex settled up 317.72 points or 0.90 per cent at 35,774.88, from its previous close of 35,457.16 points.

NSE’s Nifty50 gained 81.20 points or 0.76 per cent to finish at 10,763.40.

IANS

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