In a significant change of policy, government has roped in private sector professionals to run two of its largest banks — Bank of Baroda and Canara Bank — as it announced appointment of MDs and CEOs of five lenders.
The move is seen as a part of process to reform the public sector banking industry, which accounts for over 70 per cent of the banking business, but struggling to deal with mounting non-performing assets.
In past, public sector banks heads were selected from among the state-run banks or government officers.
Apart from these two banks, Financial Services Secretary Hasmukh Adhia also announced names of MDs and CEOs of Bank of India, IDBI Bank and Punjab National Bank. These three executive heads are serving officials in other government-owned banks.
In addition, Adhia also announced appointments of non-Executive Chairman at Bank of Baroda, Bank of India, Canara Bank, Vijaya Bank and Indian Bank.
The government also picked up private sector executives for the post of non-Executive Chairman of Bank of Baroda and 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.
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 and CEOs of Bank of India, IDBI Bank and Punjab National Bank, respectively.
Rego and Ananthasubramanian took charge today.
Ravi Venkatesan (51), Independent Director, Infosys has been appointed as non-Exeuctive Chairman of Bank of Baroda. T N Manoharan (59), Director, Tech Mahindra, Public Health Foundation is non-Executive Chairman of Canara Bank.
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 appointed earlier.
The government had 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 and CEO was revamped. Private sector candidates were also allowed to apply for the position of MD and CEO of the five top banks. Three stage screening was done for the MD’s position culminating into final interview by three different panels,” Adhia said.