India’s banking and financial sector may see a change of guard at key positions of important institutions with the terms of the Reserve Bank of India Governor and that of the Chairman of the Securities and Exchange Board of India set to expire in 2016. Manojit Saha and Ashish Rukhaiyar take a look at five key personalities whose terms come to an end this year.
U.K. Sinha, Chairman, SEBI
Upendra Kumar Sinha’s term as the chairman of the Securities and Exchange Board of India (SEBI) ends on February 17. Mr. Sinha was appointed for a term of three years on February 18, 2011, and subsequently given a two-year extension in 2014.
During his tenure, the capital markets regulator strengthened the norms for corporate governance and public shareholding apart from streamlining investment by foreign investors. He also got mutual funds to move beyond the largest cities to widen their coverage and reach more retail investors.
The commodity markets regulator, the Forward Markets Commission (FMC), was merged with SEBI in September 2015. While Mr. Sinha, 63, is technically eligible for another extension, as the retirement age at the markets regulator is 65, the government has already initiated the process to find a possible successor. More than 50 candidates have applied for the post after the government invited applications.
Raghuram Rajan, Governor, Reserve Bank of India
Raghuram Rajan, 52, who was named Governor of the central bank amid a currency crisis in 2013, will become eligible for reappointment in September when his first three-year term ends. Dr. Rajan, who successfully stabilised the rupee, also took the battle against inflation head on. Retail inflation began slowing from 2014 after having hovered around double digit levels. His term has so far been characterised by radical steps to improve the country’s banking system and monetary policy framework.
The last four predecessors of Dr. Rajan all served for at least five years at the helm of the apex bank.
Urjit Patel, deputy governor, RBI
Urjit Patel’s current three-year term as the deputy governor of RBI in charge of the all important monetary policy will expire this month. Dr. Patel, appointed in January 2013, has about two decades of experience across sectors, including finance, energy and infrastructure.
A committee headed by Dr. Patel to review the monetary policy framework suggested sweeping reforms that included inflation targeting as the main objective of the central bank and the setting up of a monetary policy committee.
The government has interviewed candidates for the deputy governor’s post including Dr. Patel, 52, who is eligible for extension.
Arundhati Bhattacharya, chairman, SBI
Arundhati Bhattacharya, 59, became the first woman to be appointed at the helm of the State Bank of India in October 2013, when the bank was struggling with rising non-performing assets like most other public sector banks. Her term, which expires in September, has seen gross bad loans decline to Rs 56,834 crore from Rs 65,000 crore in two years. The bank’s provision coverage ratio has also moved up beyond 70 per cent, for the first time.
Ms. Bhattacharya was also the first SBI chairman who got a fixed term of three years. The four managing directors are the key contenders to become her successor.
Harun Rashid Khan, deputy governor, RBI
Harun Rashid Khan, 61, was appointed deputy governor of the RBI in 2011 for a three-year term. In July 2014, his term was extended for two more years. The government will have to look for his successor as 62 is the superannuation age for a deputy governor.
Mr. Khan looks after the foreign exchange department and played a crucial role during the currency crisis of 2013 in restoring stability in the financial markets. RBI has four deputy governors, with two of them promoted from within the ranks. Mr. Khan being one of them, his successor is likely to be selected from the 12 executive directors of the RBI.
Published - January 01, 2016 12:19 am IST
