Sameer Gehlaut, Co-Founder and Chairman of Indiabulls Housing has stepped down from his current position. In regulatory filing IBHFL said that Gehlaut will be replaced by SS Mundra, former Deputy Governor of Reserve Bank of India, while Gehlot will take charge as the chief executive of subsidiary Indiabulls Ventures with immediate effect.

“The board noted that the appointment of Mundra as Non-Executive Chairman will ensure high standards of professionalism and governance of the Company," said the stock exchange filing.

The housing finance company also added that Gehlaut will continue as non-executive, non-independent director and will focus on growing the consumer finance and healthcare business through Indiabulls Ventures.

“Further, Gehlaut informed the board that he has taken up the position of Chief Executive Officer of another listed company promoted by him - Indiabulls Ventures Ltd and going forward he would like to focus full time on the Chief Executive's role for growing it's consumer business in finance and healthcare," the company said.

Mundra , who was brought in the company board in August 2018 ostensibly to helm Indiabulls efforts to obtain a banking license, has held various level positions in public sector banks , including Chairman and Managing Director of Bank of Baroda, Executive Director of Union Bank of India and Chief Executive of Bank of Baroda (European Operations), amongst others. His last assignment was at the Reserve Bank of India, from where he took office as the Deputy Governor in July 2017.

The change in transition comes at a time when the financial conglomerate has been facing several challenges as a fallout of the disruption caused by Covid-19. The group sometime ago sacked nearly 2000 employees. In April Gehlaut agreed to forgo his entire salary for the fiscal, while Vice-Chairman and close aide Gagan Banga opted to take a 75 percent cut.

Indiabulls’ business has been under pressure as evidenced by ratings downgrades. In March, international rating agency Moody’s downgraded Indiabulls Housing Finance from B2 to B3, with a negative outlook, citing a challenging fund-raising environment.

The financial conglomerate was hoping to complete the merger with Lakshmi Vilas bank to overcome its challenges in raising long term resources. However RBI rejected the proposal which led to the company looking at other avenues for divestment of resources.