Ujjivan Small Finance Bank shares hit a record low on Friday following the resignation of Nitin Chugh as its CEO and managing director.

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The small finance bank on Thursday said that Chugh's resignation would come into effect from the close of business hours on September 30.

Chugh resigned due to personal reasons and "there are no material reasons", and he will also cease to be a director of the lender, Ujjivan said.

Ujjivan Small Finance Bank shares slumped as much as 7.22 percent to Rs 22.50 on BSE on Friday, the lowest intraday level recorded since their listing in December 2019.

Samit Ghosh, the founder of Ujjivan Financial Services, the holding company of Ujjivan Small Finance Bank, said Chugh's exit has come as a surprise.

His resignation has been discussed with the Reserve Bank of India, and a transition plan will be shared with the regulator, Ghosh said on a conference call. Ujjivan Small Finance Bank will appoint an interim CEO once Chugh's exit comes into effect, he added.

Also read: Ujjivan SFB expects to restructure 7-8% loans by Q2

The company has been facing attrition at the leadership level and has been working on strengthening its board for the past four months, Ghosh said.

He also said the company has already identified a "strong candidate" to lead the lender as managing director and CEO in the interim.