Big move by Modi govt: PM deploys these 10 men to whip Public sector banks into shape

The Appointments Committee of Union Cabinet headed by Prime Minister Narendra Modi has cleared the names of 10 senior executives to head as many public sector banks (PSBs). The posts were lying vacant for six to 12 months. In a significant reform measure in the banking sector, the government for the first time appointed five deputy managing directors (DMDs) of State Bank of India (SBI) to head PSBs so that the management skills at the biggest lender migrate to smaller banks, where lending practices need to be beefed up for better performance.

SBI DMDs who will head other PSBs are Mrutyunjay Mahapatra, in charge of strategy and digital payments, who will move as MD and CEO of Syndicate Bank; Padmaja Chundru, DMD in charge of new business at SBI, will head Chennai-based Indian Bank; Pallav Mohapatra, DMD in charge of SBI’s critical stressed assets group, will move as MD and CEO of Central Bank of India; J Packirisamy, DMD, mid-corporate accounts will move as MD and CEO of Andhra Bank, and Karnam Shekhar will move to Dena Bank as MD and CEO.

Bank Board Bureau (BBB) had recommended appointing six DMDs of SBI to head smaller PSU banks. Except for C V Nageswar, DMD in charge of global markets at SBI, all the other five DMDs have been appointed.

Besides the top executives of SBI, executive directors (ED) of other banks have been elevated as MD and CEO of the remaining five that were headless. S S Mallikarjuna Rao, ED at Syndicate Bank has been appointed MD and CEO of Allahabad Bank initially for a period of three years. Rao’s tenure will be extendable up to the date of his superannuation, i.e, January 31, 2022, the order said.

A S Rajeev, executive director of Indian Bank, has been named MD and CEO of Bank of Maharashtra for an initial period of three years and extendable up to two years after “review of his performance”, it said.

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Atul Kumar Goel and S Harisnakar have been appointed MD and CEO in UCO Bank and Punjab & Sind Bank, respectively. Goel is ED, Union Bank of India, and Harisankar is ED of Allahabad Bank. Ashok Kumar Pradhan, the current ED of United Bank of India, will be elevated and the MD and CEO of the bank.
The appointments come more than two months after they were recommended by the BBB, an advisory body formed by the government for top level appointments in the banks.

The government has also appointed members on the local Board of southern, northern and eastern Boards of Reserve Bank of India (RBI). Rakesh Jain has been appointed as the southern Board member, Revathy Iyer and Raghevendra Narayan Dubey on the northern local Board while Sachin Chaturvedi has been appointed on the eastern local Board of the central bank.

Source: DNA Money