With chief executives demitting office at the end of June 2016, two weak public sector lenders -- Indian Overseas Bank and United Bank of India -- are without full-time person at the helm.
P Srinivas came from Bank of Baroda December 31, 2014 December 2014 to on Kolkata-based United Bank of India. R. Koteeswaran too joined Indian Overseas Bank on the same day. Prior to this he was executive director with Bank of India.
Banks Board Bureau (BBB) headed by Vinod Rai had conducted interviews of post of MD & CEO at PSBs in May 2016. The government is yet to make announcement about appointments.
Senior Bank executives said absence of a CEO impacts the work. Full-time MD&CEO to lead organisation is critical especially when banks are passing through hard times.
Earlier many public sector banks have been hit hard by absence of full time CEO for long period. Two large banks -- Punjab National Bank and Bank of Baroda- - are case in point.
United Bank, in communication for Bombay Stock Exchange, said the affairs of the Bank shall be conducted by Executive Directors. The financial & administrative powers of the Managing Director & CEO shall be exercised by them with the approval of the Board/ Management Committee till such time a regular incumbent MD&CEO is appointed by the Government.
IOB and United Bank were both in midst of systematic plans to reduce stress on books and improve recoveries when they were impacted by RBI's Asset Quality Review(AQR) in 2015-16, jacking up tally of non-performing loans.
Chennai-based IOB posted net loss of Rs 2,898 crore for 2015-16, due to implementation of Assets Quality Review, which warranted increased provisions on identified non-performing assets (NPAs). Gross NPAs stood at 17.4% (Rs 30,049 crore) with Net NPAs of 11.9% (Rs 19,213 crore) at end of March 2016.
Similarly Kolkata-based United Bank is saddled with huge pool of bad loans and reported net loss in 2015-16. Its gross NPA of the Bank stood at 13.26% (Rs. 9,471.01 crore) with net NPAs of 9.04% (Rs. 6,111 crore) by March 2016.
source business standard
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