The Indian government is set to announce a significant reshuffle in the top management of public sector banks. According to senior officials aware of the development, Kalyan Kumar, currently the executive director of Punjab National Bank, is likely to be appointed as the head of Union Bank of India. Meanwhile, Lalit Tyagi, executive director at Bank of Baroda, will be moving to the Central Bank of India. This decision has been recommended by the Department of Financial Services.
Asheesh Pandey, executive director of Bank of Maharashtra, has been dropped from the top post in public sector banks for the second time. Despite being proposed by the Financial Services Institutions Bureau (FSIB), the nodal agency responsible for recommending top-level postings in public sector undertakings, Pandey’s appointment has been overlooked. This is not the first time Pandey has faced rejection; last year, he was recommended for the top post at Indian Bank but was rejected due to concerns over his behavior and conduct.
The recent decision comes after FSIB recommended Pandey for the MD & CEO post at Union Bank of India and Kalyan Kumar for the MD & CEO post at Central Bank of India in May this year. Union Bank has been without a head since A Manimekhalai completed her term in June, while Central Bank’s chief M V Rao completed his term in July.
The decision has raised eyebrows, especially since Pandey’s appointment was seen as a homecoming, having risen to the rank of general manager at Union Bank. The bank’s previous chief, Manimekhalai, did not seek an extension after completing her three-year term, amidst controversy over the procurement of nearly 2 lakh copies of a book authored by Krishnamurthy V Subramanian, a former executive director at the International Monetary Fund, without the bank board’s approval.
The Central Bank’s board has not yet named an executive director to take over the operations, going against the usual practice of appointing the senior-most executive to run the show. The developments are being closely watched by the banking industry, with many waiting to see how the new appointments will shape the future of public sector banks in India. As a reliable and trusted news source, it is essential to keep track of these developments and their implications for the Indian banking sector.