Heads of 7 PSU Banks Appointed

In a major restructuring in the banking sector, Appointments Committee of the Cabinet (ACC), headed by Prime Minister Narendra Modi appointed heads of seven public sector banks besides shifting managing directors of PNB and Bank of India.
PNB Managing Director (MD) Usha Ananthasubramanian has been appointed as the head of Kolkata-based Allahabad Bank.
Melwyn Rego of Bank of India will head the Syndicate Bank.
Rajkiran Rai G, currently executive director of Oriental Bank of Commerce will head Union Bank of India as its MD and CEO for a period of three years.
R Subramaniakumar, currently executive director of Indian Overseas Bank, has been made as its MD and CEO.
Sunil Mehta, currently the executive director of Corporation Bank will head the PNB in place of Usha Ananthasubramanian.
The executive director of Canara Bank Dinabandhu Mohapatra will be the MD and CEO of Bank of India.
R A Sankara Narayanan, currently executive director of BoI will be the MD and CEO of Vijaya Bank.

Reason

Non-performance of the public sector banks in tackling the menace of non-performing assets (NPAs) is said to be the reason behind the major restructuring of the public sector banks.
Bad loans of public sector banks (PSBs) surged by over Rs 1 lakh crore to reach Rs 6.06 lakh crore during April-December of 2016-17. The bulk of the NPAs have emanated from the power, steel, road infrastructure and textile sectors.
Last month, NPA-laden IDBI Bank’s head Kishor P Kharat was shifted to Indian Bank and the Indian Bank’s Mahesh Kumar Jain was shifted to IDBI Bank.

Month: Current Affairs - May, 2017