SS Mallikarjuna Rao will oversee the merger of Oriental Bank of Commerce and United Bank of India with Punjab National Bank.
New CMD of Punjab National Bank: The Union government on Monday appointed SS Mallikarjuna Rao, Managing Director and CEO of Allahabad Bank as the new Managing Director and Chief Executive Officer of Punjab National Bank. Mr Rao will replace Sunil Mehta who superannuated on September 30. Mallikarjuna Rao, 57, who already had a stint with Punjab National Bank, will oversee the merger of Oriental Bank of Commerce and United Bank of India with Punjab National Bank. Last month, finance minister Nirmala Sitharaman had announced the Modi government’s decision to merge 6 PSU banks with 4 larger banks as Prime Minister Modi seeks to make the country a $5 trillion economy in next five years.
A seasoned banker, Mallikarjuna Rao was with Oriental Bank of Commerce before being elevated as Executive Director of Syndicate Bank in 2016 and two years later he was appointed MD & CEO of Allahabad Bank in September last year.
“In exercise of powers conferred by the proviso to clause (a) of sub section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 read with sub-paragraph (1) paragraph 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, Central Government hereby posts Ch. S.S. Mallikarjuna Rao, Managing Director and Chief Executive Officer in Allahabad Bank as Managing Director and Chief Executive Officer in Punjab National Bank,” said the government in a notification issued on October 1.
The notification issued by the department of financial services, ministry of finance, a copy of which has been reviewed by the Financial Express Online, states that he has been appointed for a period of two years (18.09.2021) or until further orders.
SS Mallikarjuna Rao will not only have to deal with the issue of merger of Oriental Bank of Commerce and United Bank of India with Punjab National Bank but he will also have to restore the image of PNB which has been dented badly due to $2 billion fraud committed by the uncle-nephew duo of Mehul Choksi and Nirav Modi.