At a time when public sector banks are going through a tough period due to a huge amount of Non Performing Assets (NPA) on their books, seven public sector banks are working without a chief executive officer, while the term of three other CEOs will end by August this year.
Syndicate Bank, Bank of Baroda, and Indian Bank will soon be without a head as Melwyn Rego, PS Jayakumar, and Kishor Kharat are on their way out after completing a tenure of three years in the company. Bank of Maharashtra, Allahabad Bank, Central Bank of India and Canara Bank are some of the other banks that are functioning without any head.
According to a media report in the leading newspaper, the Banks Board Bureau has shortlisted 14 candidates for CEO post and six of them are from State Bank of India. It includes Padmaja Chandru, Mrutunjay Mohapatra, Pallav Mohapatra, J Packirisamy, Karnam Sekar and CV Nageswar.
The banking system has been going through a tough time. Consider this: Indian banks reported a loss of about Rs 70,000 crore due to fraudulent activities in the banking system during the last three fiscals up to March 2018, the
Rajya Sabha was informed on Tuesday. Minister of State for Finance Shiv Pratap Shukla attributed the spurt in the stressed assets of the Indian Banks to the aggressive lending practices, wilful default, loan frauds, corruption and economic slowdown.
The scheduled commercial banks (SCBs) reported a loss of Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore during the years 2015-16, 2016-17 and 2017-18 respectively, said Shiv Pratap Shukla in a written reply quoting RBI data.