New Chairpersons appointed for Central Bank of India, Dena Bank and Punjab & Sind Bank

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By Admin

As an objective to reform Public Sector Banks, the finance ministry of India has appointed non-executive chairpersons at three PSU Banks namely Dena Bank, Central Bank of India and Punjab & Sind Bank.

There has been a massive disruption in the PSU banks due to increase in non-performing assets (NPAs), bad loans, and huge quarterly & annual losses. Uncovering of several scams, including PNB fraud case, have also added to further ruckus in the balance sheet of the public sector banks.

Financial Services Secretary Rajiv Kumar tweeted, “As part of banking reforms and on recommendation of Banks Board Bureau (BBB), the government appoints Charan Singh, Anjali Bansal, and Tapan Ray as non executive chairperson of Punjab & Sind Bank, Dena Bank and Central Bank of India, respectively.”

Who are Charan Singh, Anjali Bansal, and Tapan Ray?

Let’s meet the new chairpersons!

Charan Singh had worked as a senior economist at IMF and as a Director at Reserve Bank of India

Anjali Bansal had served McKinsey and Company previously and she is also the founder of renowned company, Spencer Stuart’s India.

Tapan Ray was a Secretary in the Ministry of Corporate Affairs.

What’s more expected from the government? 

As per the sources, changes in the top management of server other PSUs is on the cards.

Recently, Allahabad Bank MD and CEO Usha Ananthasubramanian was disallowed to use all executive powers. Last year in May 2017, the Indian government shuffled the top management of PNB, BOI, IDBI and Indian Bank.

Furthermore, the finance ministry also initiated to infuse a massive capital of Rs.2.11 lac crore in the PSUs in a step to protect them from drowning. However this infusion directly been presented in Fy2018 Budget as a part of banking reform.

To keep a check on the execution of capital infusion, Indian Banks’ Association (IBA) will measure the level of reforms by recruiting fresh consultant team for the same.

Q4 2017-18 numbers

Recently india’s largest bank, SBI posted a loss of Rs.7718 crore and second largest unit, PNB has a net loss of Rs.13,417 crore.

Most of the other PSBs have the same story of net losses, bad loans, and/or scams.