Govt Banks towards Privatisations

First time in India private bank professionals are placed as head of govt banks. The placement has taken place under  INDRADHANUSH mission of the govt for revamp of PSU banks.

As a process to reform the public sector banks in India, the govt has decided to hire private bank professionals and changed the criteria for chairman , MD andCEO. The govts banks having 70 percent sharing in banking industry in the country.

The government selected private sector executives for the post of non-Executive Chairman of Bank of Baroda Mr Ravi Venkatesan (51), Independent Director, Infosys and Mr T N Manoharan (59), Director, Tech Mahindra, Public Health Foundation for Canara Bank.

Managing Director and CEO of VBHC Value Homes Pvt Ltd P S Jayakumar (53) has been selected to head Bank of Baroda. MD and CEO of private sector lender The Laxmi Vilas Bank Rakesh Sharma (57) will head Canara Bank.

Now the BOB and Canara Banks are fully in hands of private bank professionals.

Mr M O Rego (Deputy Managing Director, IDBI Bank), Kishore Kharat Piraji (Executive Director, Union Bank of India), and Usha Ananthasubramanian (CMD, Bhartiya Mahila Bank) are the new MD andCEOs of Bank of India, IDBI Bank and Punjab National Bank, respectively.

Mr G Padmananbhan (Retired ED of RBI), G Narayanan (Retired ED, Indian Overseas Bank) and T C V Subramainian (Retired CMD, Exim Bank) have been appointed as non-Executive Chairman of Bank of India, Vijaya Bank and Indian Bank, respectively.

Five MD and CEOs were already appointed earlier. The new appointments are :

  

New Chairman and MD/CEO of Five PSU Banks
Bank	Chairman( Part-Time)	MD & CEO
Bank of India	Mr G Padmananbhan (Retired ED of RBI),	Mr M O Rego (Deputy Managing Director, IDBI Bank)
Bank of Baroda	Mr Ravi Venkatesan (51), Independent Director, Infosys	P S Jayakumar (53),Former Head of CitiBank Consumer Banking, MD and CEOof VBHC Value Homes Pvt Ltd
Canara Bank	Mr T N Manoharan (59), Director, Tech Mahindra, Public Health Foundation	Rakesh Sharma (57), MD and CEO ,The Laxmi Vilas Bank
Indian Bank	T C V Subramainian (Retired CMD, Exim Bank)
Vijaya Bank	G Narayanan (Retired ED, Indian Overseas Bank)
IDBI Bank		Kishore Kharat Piraji (Executive Director, Union Bank of India)
Punjab National Bank		Usha Ananthasubramanian (CMD, Bhartiya Mahila Bank)

The government had earlier split the post of chairman and managing director for public sector banks; it was decided that there would be a non-executive chairman to guide the boards of such banks while the day-to-day management would be looked after by an MD and chief executive officer.

The government had earlier split the post of chairman and managing director for public sector banks; it was decided that there would be a non-executive chairman to guide the boards of such banks while the day-to-day management would be looked after by an MD and chief executive officer.

This move is a part of 7-Point Reform Agenda of the Govt.

The 7-Ponit Reform Agenda of the Govt

The 7-point reform agenda are appointments, bank board bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms

Appointments : Re-exercise of appointments norms, criteria and norms at higher level

Bank Board Bureau: The government will set up a Bank Board Bureau through which two dozen state-run banks would be monitored for key performance indicators.

Capitalization: The government will inject a total of Rs 25,000 crore of capital into debt-laden state banks in thisfiscal; Rs 20,000 crore would be injected in a month. Over the next four years, the government plans to inject Rs 70,000 crore.

De-stressing: Bad loan ratios at state-run banks have near-doubled in the past four years as weak economic growth hurt companies' ability to repay debt. However, the situation of stressed assets is not so bad.

Empowerment: More flexibility will be given to state-run banks for hiring manpower, the government said.

Accountability :The government will soon come out with a framework of accountability and announced more reforms as part of its strategy to revamp the public sector banking.