Sriram Kalyanaraman resigned as managing director and CEO of National Housing Bank amid allegations of giving favors to various companies, The Economic Times reported Aug. 15, citing a senior government official. NHB serves as India's housing finance regulator.

The Indian government accepted Kalyanaraman's resignation and ordered an investigation against him, the official said, adding that the move is part of the government's initiative to clean the country's banking system.

The regulator allegedly adopted unethical practices for approving refinance facility to various housing finance companies. In addition, policies on refinancing were frequently adjusted by the housing regulator, another official aware of the allegations said.