Public Sector Banks likely to undergo leadership reshuffle soon

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TransfersThe Centre is considering the plan of initiating major leadership reshuffle in some of the Public Sector Banks (PSBs). This update comes days after the announcement of its recapitalisation plan.

According to a senior finance ministry official, Managing Directors and Chief Executives of about four PSBs are likely to get moved as their performance was not up to the mark. This move is meant to send a signal to other underperforming leaders.

“Performance of the top leaders is under review. Names of most of these lenders are already under the Reserve Bank of India’s prompt corrective action (PCA) plan and if needed, there will be some leadership changes,” he said.

Recently, the Central Government has announced an offering of Rs 88,000 crore capital in the form of recapitalisation support to 20 PSBs. These funds and its usage will be reviewed by the respective bank boards.

Out of the total amount, Rs 52,000 crore has been allocated to 11 banks under stress.

PSBs underwent similar reshuffle in 2017 when Usha Ananthasubramanian, the then Managing Director of Punjab National Bank, was transferred to Allahabad Bank. Melwyn Rego, the then Managing Director of Bank of India, was shifted to Syndicate Bank.

In addition to this, Kishor Kharat and MK Jain were asked to swap their posts. While Kharat was moved from IDBI Bank to Indian Bank and Jain to was to IDBI from Indian Bank.

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