Highlighting the action taken and to be taken to revamp the public sector banks (PSBs), Finance Minister Arun Jaitley said the Government has taken various new initiatives and policy decisions to revamp the sector.
Financial Services Secretary Hasmukh Aadhia also made a comprehensive and self-contained presentation highlighting the various policy initiatives taken by the Department in last one year and perspective decisions to be taken in near future to overall improve the performance of the PSBs.
Key details of the presentation made on the occasion is as follow:
The Government decided to separate the post of Chairman and Managing Director by prescribing that in the subsequent vacancies to be filled up the CEO will get the designation of MD & CEO and there would be another person who would be appointed as non-Executive Chairman of PSBs. This approach is based on global best practices and as per the guidelines in the Companies Act to ensure appropriate checks and balances. The selection process for both these positions has been transparent and meritocratic.
MD & CEOs
|Name of the Bank||Name||Age||Present Position|
|Bank of Baroda||P S Jayakumar||53 yrs||MD & CEO of VBHC Value Homes Pvt Ltd.|
|Bank of India||M.O. Rego||56 yrs||Deputy Managing Director, IDBI Bank|
|Canara Bank||Rakesh Sharma||57 yrs||MD & CEO, The Laxmi Vilas Bank Ltd|
|IDBI Bank Ltd||Kishore Kharat Piraji||56 yrs||Executive Director, Union Bank of India|
|Punjab National Bank||Smt. Usha Ananthasubramanian||56 yrs||CMD, Bhartiya Mahila Bank|
|Name of the Bank||Name||Age||Present/Last Position held|
|Bank of Baroda||Ravi Venkatesan||51 yrs||Independent Director, Infosys|
|Bank of India||G Padmananbhan||60 yrs||Retired ED of Reserve Bank of India|
|Canara Bank||T N Manoharan||59 yrs||Director, Tech Mahindra, Public Health Foundation|
|Vijaya Bank||G Narayanan||66 yrs||Retired ED, Indian Overseas Bank|
|Indian Bank||T C V Subramainian||66 yrs||Retired CMD, Exim Bank|
Bank Board Bureau:
The Bank Board Bureau (BBB) will be a body of eminent professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs. They will also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development
The proposes to make available Rs.70,000 crores out of budgetary allocations for four years as per the figures given below:
|(i)||Financial Year 2015 -16||–||Rs. 25,000 crore|
|(ii)||Financial Year 2016-17||–||Rs. 25,000 crore|
|(iii)||Financial Year 2017-18||–||Rs. 10,000 crore|
|(iv)||Financial Year 2018-19||–||Rs. 10,000 crore|
|Total||–||Rs. 70,000 crore|
Improved valuations coupled with value unlocking from non-core assets as well as improvements in capital productivity, will enable PSBs to raise the remaining Rs. 1,10,000 crore from the market. Moreover, the government is committed to making extra budgetary provisions in FY 18 and FY 19, to ensure that PSBs remain adequately capitalised to support economic growth.
In the Supplementary Demand recently passed by Parliament, an amount of Rs. 12,000 crore has been provided, in addition to Rs. 7,940 crore already provided in the budget of FY 2015-16. The remaining Rs. 5, 000 crore would be provided in the second Supplementary later this year.