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”
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.
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:-
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|
|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