In a major restructuring in the public sector banking space, the government on Friday appointed heads of various lenders, besides carrying out rejigs at Punjab National Bank and Bank of India.
While Punjab National Bank Managing Director Usha Ananthasubramanian has been shifted to Kolkata-based Allahabad Bank and head of Bank of India Melwyn Rego moved to Syndicate Bank with immediate effect, five others have been promoted.
The Appointments Committee of the Cabinet has approved the appointments.
According to experts, the changes were made in these two public sector banks after a similar rejig at IDBI Bank because of non-performance in tackling non-performing assets (NPAs).
However, a senior finance ministry official said the two changes have been made because the Department of Financial Services wanted to give longer tenures to the heads of these two large banks.
Last month, NPA-laden public sector lender IDBI Bank head Kishor P Kharat was shifted to Indian Bank. Mahesh Kumar Jain of Indian Bank was shifted to IDBI Bank.
The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, also appointed Rajkiran Rai G, executive director of Oriental Bank of Commerce, as managing director and chief executive officer (MD and CEO) of Union Bank of India for three years. It is extendable up to May 2022 after a review of his performance, the official statement said.
Besides, R Subramaniakumar, currently executive director of Indian Overseas Bank, has been made MD and CEO. Sunil Mehta, executive director in Corporation Bank, will head the country's second largest public sector bank, Punjab National Bank, in place of Ananthasubramanian.
Executive director of Canara Bank Dinabandhu Mohapatra has been promoted as MD and CEO of Bank of India. The Cabinet panel appointed R A Sankara Narayanan, executive director of Bank of India, as MD and CEO of Vijaya Bank.
Earlier in the day, the government empowered the Reserve Bank of India to ask banks to initiate insolvency proceedings to recover bad loans, amounting to more than Rs 6 lakh crore in case of state-owned lenders alone, and promised more measures to resolve the NPA crisis.
Toxic loans of public sector banks rose Rs 1 lakh crore to Rs 6.06 lakh crore during April-December of 2016-17, the bulk of which came from power, steel, road infrastructure and textile sectors. Gross NPAs of public sector banks nearly doubled to Rs 5.02 lakh crore at the end of March 2016, up from Rs 2.67 lakh crore at the end of March 2015.
While Punjab National Bank Managing Director Usha Ananthasubramanian has been shifted to Kolkata-based Allahabad Bank and head of Bank of India Melwyn Rego moved to Syndicate Bank with immediate effect, five others have been promoted.
The Appointments Committee of the Cabinet has approved the appointments.
According to experts, the changes were made in these two public sector banks after a similar rejig at IDBI Bank because of non-performance in tackling non-performing assets (NPAs).
However, a senior finance ministry official said the two changes have been made because the Department of Financial Services wanted to give longer tenures to the heads of these two large banks.
Last month, NPA-laden public sector lender IDBI Bank head Kishor P Kharat was shifted to Indian Bank. Mahesh Kumar Jain of Indian Bank was shifted to IDBI Bank.
The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, also appointed Rajkiran Rai G, executive director of Oriental Bank of Commerce, as managing director and chief executive officer (MD and CEO) of Union Bank of India for three years. It is extendable up to May 2022 after a review of his performance, the official statement said.
Besides, R Subramaniakumar, currently executive director of Indian Overseas Bank, has been made MD and CEO. Sunil Mehta, executive director in Corporation Bank, will head the country's second largest public sector bank, Punjab National Bank, in place of Ananthasubramanian.
Executive director of Canara Bank Dinabandhu Mohapatra has been promoted as MD and CEO of Bank of India. The Cabinet panel appointed R A Sankara Narayanan, executive director of Bank of India, as MD and CEO of Vijaya Bank.
Earlier in the day, the government empowered the Reserve Bank of India to ask banks to initiate insolvency proceedings to recover bad loans, amounting to more than Rs 6 lakh crore in case of state-owned lenders alone, and promised more measures to resolve the NPA crisis.
Toxic loans of public sector banks rose Rs 1 lakh crore to Rs 6.06 lakh crore during April-December of 2016-17, the bulk of which came from power, steel, road infrastructure and textile sectors. Gross NPAs of public sector banks nearly doubled to Rs 5.02 lakh crore at the end of March 2016, up from Rs 2.67 lakh crore at the end of March 2015.