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Indradhanush Plan for Revamp of Public Sector Banks

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Indradhanush Plan for Revamp of Public Sector Banks. Ministry of Finance issued new Plan for Revamp of Public Sector Banks. The Public Sector Banks (PSBs) play a vital role in India’s economy. In the past few years, because of a variety of legacy issues including the delay caused in various approvals as well as land acquisition etc., and also because of low global and domestic demand, many large projects have stalled. Public Sector Banks which have got predominant share of infrastructure financing have been sorely affected. Now you can scroll down below and check complete details for “Indradhanush Plan for Revamp of Public Sector Banks”

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Indradhanush Plan for Revamp of Public Sector Banks

The Public Sector Banks (PSBs) play a vital role in India’s economy. In the past few years, because of a variety of legacy issues including the delay caused in various approvals as well as land acquisition etc., and also because of low global and domestic demand, many large projects have stalled. Public Sector Banks which have got predominant share of infrastructure financing have been sorely affected. It has resulted in lower profitability for PSBs, mainly due to provisioning for the restructured projects as well as for gross NPAs.

Indradhanush Plan for Revamp of Public Sector Banks

The present Government has put in place a comprehensive framework for improving PSBs. Most recently, we have made the announcement of capital allocation by Government for PSBs in the next four years. Announcement of capital plans for the PSBs is only one of the many steps taken by the Government. The other steps taken by Government are as follows:-

A) Appointments:

The Government decided to separate the post of Chairman and Managing Director by prescribing that in the subsequent vacancies to be filled up the CEO will get the designation of MD & CEO and there would be another person who would be appointed as non-Executive Chairman of PSBs. This approach is based on global best practices and as per the guidelines in the Companies Act to ensure appropriate checks and balances. The selection process for both these positions has been transparent and meritocratic. The entire process of selection for MD & CEO was revamped. Private sector candidates were also allowed to apply for the position of MD & CEO of the five top banks i.e. Punjab National Bank, Bank of Baroda, Bank of India, IDBI Bank and Canara Bank. Three stage screening was done for the MD’s position culminating into final interview by three different panels.

Five MD & CEOs were appointed earlier. Appointments of MD & CEOs of five more banks – Bank of Baroda, Bank of India, Canara Bank, IDBI Bank and Punjab National Bank and Non-executive Chairman of 5 banks are announced today, as per the list below:

MD & CEOs

Name of the Bank Name Age Present Position
Bank of Baroda P S Jayakumar 53 yrs MD & CEO of VBHC Value Homes Pvt Ltd.
Bank of India M.O. Rego 56 yrs Deputy Managing Director, IDBI Bank
Canara Bank Rakesh Sharma 57 yrs MD & CEO, The Laxmi Vilas Bank Ltd
IDBI Bank Ltd Kishore Kharat Piraji 56 yrs Executive Director, Union Bank of India
Punjab National Bank Smt. Usha Ananthasubramanian 56 yrs CMD, Bhartiya Mahila Bank

Non-Executive Chairman

Name of the Bank Name Age Present/Last Position held
Bank of Baroda Ravi Venkatesan 51 yrs Independent Director, Infosys
Bank of India G Padmananbhan 60 yrs Retired ED of Reserve Bank of India
Canara Bank T N Manoharan 59 yrs Director, Tech Mahindra, Public Health Foundation
Vijaya Bank G Narayanan 66 yrs Retired ED, Indian Overseas Bank
Indian Bank T C V Subramainian 66 yrs Retired CMD, Exim Bank

The CVs of newly appointed MD & CEOs / non-executive Chairman are in the docket.

The process of selection of Non-official / Independent Directors has been revamped and made transparent.

There are some vacancies of Non-Official Directors on the Boards of PSBs and we would like to complete the selection process in the next three months. The selection of nonexecutive Chairman in the remaining six PSBs will also be completed in next three months. Also the appointment of MD & CEO in two other banks will also be done as early as possible

Click Here to Download Official Announcement for More Details

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About Raju Choudhary

Article by Raju Choudhary Raju has written 537 articles. If you like This post, you can follow CAknowledge on Twitter. Subscribe to CAknowledge feed via RSS or EMAIL to receive instant updates.

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