Industry

One-third of PSBs remain headless

One-third of public sector banks remain headless as a Prime Minister-headed panel is yet to clear the CEO appointments. The chief executive officer post at three PSBs remain vacant for more than seven months.

On July 31, two more PSB CEOs — Rakesh Sharma of Canara Bank and Rajeev Rishi of Central Bank of India — hung up their boots, taking the total number of such vacancies to seven. There are 21 public sector lenders in the country.

Dena Bank, Punjab & Sind Bank and Andhra Bank do not have a CEO since January this year.

In May, Allahabad Bank MD and CEO Usha Ananthasubramanian was divested of her responsibilities after the CBI charge-sheeted her in the Nirav Modi scam.

In June, R. Marathe, MD & CEO, Bank of Maharashtra too was divested of his portfolio after he was arrested (later obtained bail) for allegedly violating norms while extending loans to a real estate developer.

Bank of Baroda’s MD & CEO P.S. Jayakumar will complete his three-year term in August, but is likely to get an extension.

Goyal’s assurance

These top posts, along with several executive directors’ post in public sector banks continue to remain vacant even as Finance Minister Piyush Goyal told the media on June 8 that the posts would be ‘filled up in a month’.

The Banks’ Board Bureau (BBB) too had recommended names of 14 candidates to the Union government by June end. These candidates were to be appointed for vacancies arising in the current financial year. The Appointment Committee of Cabinet (ACC), headed by the Prime Minister, makes the appointments.

The government is yet to appoint Anshula Kant as MD of SBI, as was recommended by the BBB. According to bankers, the decision-making process at banks gets affected in the absence of leadership, particularly when the festive season, during which credit demand picks up, is about to kick in.


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Printable version | Aug 4, 2021 7:10:28 PM | https://www.thehindu.com/business/Industry/one-third-of-psbs-remain-headless/article24617746.ece

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