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A New Era Has Dawned -  Private Sector Executives Enter PS Banks - Appointment of New MDs & CEOs And Non Executive Chairmen Announced



Rajesh Goyal 

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It was on 14th August 2015, on the eve of Independence Day 2015, that a list of fresh appointments for the posts of MD & CEO and Non Executive Chairman were announced after a long period of speculations.   These have been announced alongwith some other critical announcements for the reforms in the banking industry in India.  Interestingly, some of these notification of appointment of these posts indicates that these  appointments are subject to the outcome of the Writ Petition (C) No 445 of 2015 in the Supreme Court in the matter of All India Bank Officers' Confederation Vs Union of India and Others.  On the other hand some of these are subject to the outcome of Writ Petition (C) No 225 of 2015 in the Supreme Court in the matter of K D Khera Vs Union of India & Others.


We know that earlier the Government had separated 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. 

Govt has claimed that this approach is based on global best practices and as per the guidelines in the Companies Act so as to ensure appropriate checks and balances in day to day functioning of these banks.  The selection process for both these positions has been transparent and meritocratic. 

The entire process of selection for MD & CEO was revamped.  Private sector candidates were also allowed to apply for the position of MD & CEO of the five top banks i.e. Punjab National Bank, Bank of Baroda, Bank of India, IDBI Bank and Canara Bank.  Three stage screening was done for the MDís position culminating into final interview by three different panels. 

Five MD & CEOs were appointed earlier. Appointments of MD & CEOs of five more banks - Bank of Baroda, Bank of India, Canara Bank, IDBI Bank and Punjab National Bank and Non-executive Chairman of 5 banks were announced now on 14th August 2015.   Each of these appointments is likely to be for three years subject to certain other conditions.


Appointments As on 14th August 2015

Name of the Bank   Name of New Appointee Now Appointed as  Present Age  Present Position 
Bank of Baroda  P S Jayakumar  MD & CEO 53 yrs  MD & CEO of VBHC Value Homes Pvt Ltd.  
Bank of India  M.O. Rego  MD & CEO 56 yrs  Deputy Managing Director, IDBI Bank 
Canara Bank  Rakesh Sharma  MD & CEO 57 yrs  MD & CEO, The Laxmi Vilas Bank Ltd 
IDBI Bank Ltd  Kishore Kharat Piraji  MD & CEO 56 yrs  Executive Director, Union Bank of India 
Punjab National Bank  Smt. Usha Ananthasubramanian  MD & CEO 56 yrs  CMD, Bhartiya Mahila Bank



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Name of the Bank   Name of New Appointee Now Appointed as  Present Age  Present/Last Position held 
Bank of Baroda  Ravi Venkatesan  Non Executive Chairman 51 yrs  Independent Director, Infosys 
Bank of India  G Padmananbhan  Non Executive Chairman 60 yrs  Retired ED of Reserve Bank of India 
Canara Bank  T N Manoharan  Non Executive Chairman 59 yrs  Director, Tech Mahindra, Public Health Foundation 
Vijaya Bank  G Narayanan  Non Executive Chairman 66 yrs  Retired ED, Indian Overseas Bank 
Indian Bank  T C V Subramainian  Non Executive Chairman 66 yrs  Retired CMD, Exim Bank 

NOTE : The selection of non-executive Chairman in the remaining six PSBs will also be completed in next three months. Also the appointment of MD & CEO in two other banks will also be done as early as possible 

These appointments have sent lot of heart burning among General Managers and Executive Directors of Public Sector Banks, as till date they were the only immediate / future claimants for these posts.  Disguised petitions seems to have been filed by these disgruntled executives, some of whom, have reached to this level purely on account of dubious means.  It was a well known fact that under the previous government the top posts were frequently filled up on considerations other than merit.

Another highlight of these appointments is that some of these posts have been given to executives from private sector.   Most of the Non Executive Chairman are either 60+ or they will become above that age during their tenure itself. 

All these are likely to generate a lot of hot talks among the bankers.   Only time will tell as to how good this change will prove.  However, it is expected that this trend of bifurcation of top posts and selection from wider range will help to reduce corruption as these appointments were slowly considered as den of corruption.

We will discuss about other issues announced on 14th August  in the next articles.

We give below the profile of these new appointees, which will help the readers to know more about these new executives.

S No Name  Career Profile 
1 Ravi Venkatesan  Ravi Venkatesan is a Director on the Board of Infosys, and a Fellow of the Center for Higher Ambition Leadership, Boston. He is also a member of the Advisory Board of Bunge Ltd., the Global Alumni Board of Harvard Business School, and of Marico Innovation Foundation. Between 2004 and 2011, he was the Chairman of Microsoft India, which, under his leadership, became Microsoft's second largest and one of its fastest growing geographies. Prior to Microsoft, he spent sixteen years with Cummins Inc. as Chairman of Cummins India Limited, he oversaw the companyís transformation into a leading provider of power solutions and automotive engines in India.  He holds a bachelorís degree in mechanical engineering from the Indian Institute of Technology, Bombay; a masterís in engineering from Purdue University; and a Master of Business Administration from Harvard Business School. 
2 T.N. Manoharan  T.N. Manoharan served as the President of The Institute of Chartered Accountants of India (ICAI) during 2006-07 and was instrumental in charting the road map for several accounting reforms in the Indian System and pioneered proactive amendments to the Chartered Accountants Act, 1949. Shri Manoharan was the Chairman of ICAI of Accounting Research Foundation. He was on the Board of the Insurance Regulatory and Development Authority (IRDA) and on the committees constituted by Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Comptroller and Auditor General of India (C&AG) and Central Board of Direct Taxes (CBDT) during 2006-07. Shri Manoharan was nominated by the Government of India to the Board of Satyam Computer Services Ltd. He made significant contribution towards the revival of the erstwhile Mahindra Satyam within a short span of time. The Government of India conferred him the "Padma Shri" award in 2010. 
3 G. Narayanan  G. Narayanan served as Executive Director of Indian Overseas Bank, during the period spanning over 38 years in the Indian Banking Sector. He was earlier General Manager of Bank of India heading treasury operations. Shri Narayanan also served as Managing Director of Centrum Capital Ltd. and Managing Director of Securities Trading Corporation of India Ltd. He was Director of Clearing Corporation Of India Limited. He served as Director of IL&FS Investment Managers Limited and Securities Trading Corporation of India Ltd. Shri Narayanan holds a Diploma in Corporate Law. He also completed Management Accountant (MAC-1). He has B.Com form Madras University. 
4 T.C. Venkat Subramanian  T.C.Venkat Subramanian served as Managing Director and CEO of EXIM Bank. He has diverse experience in industrial and export financing. He joined EXIM Bank in 1982 when it was set up and served as its CEO till 2009. He actively participated in the setting up of EXIM Bank as a model public sector organization with a professional work culture. Prior to EXIM bank, he worked at the Bank of India and IDBI. He holds a BE, CAIIB and ICWAI (Inter). 
5 G Padmanabhan  Shri G. Padmanabhan served as Executive Director of the Reserve Bank of ndia. As Executive Director, Shri Padmanabhan looked after Department of Information and Technology, Department of Payment and Settlement Systems and Foreign Exchange Department. Prior to his appointment as Executive Director, Shri Padmanabhan was heading the Department of Payment & Settlement Systems in the Bank since March 2005.He is a post graduate in Economics (First Class- First) from the University of Kerala and an MBA (International Banking and Finance) from the Birmingham University, UK. 
S. No.  Name  Career Profile 
1 K.P. Kharat  Shri Kishor Kharat is Executive Director of Union Bank of India. In his banking career, in Bank of Baroda, spanning over more than three decades, Shri Kharat has got varied exposure which includes Credit Administration, Foreign Business, Information Technology and general administration in India as well as overseas. Shri. Kharat has established and headed a foreign subsidiary of Bank of Baroda in Trinidad & Tobago, West Indies. His other foreign assignment was at Sharjah (UAE). In his last posting Shri Kharat was heading Financial Inclusion Vertical as General Manager of Bank of Baroda, wherein he had been a key driver for implementation of major Financial Inclusion initiatives. Shri Kharat is a graduate in Commerce, CAIIB and Law. He also holds an Executive Diploma in Management. 
2 Usha Ananthasubramanian  Smt. Usha Ananthasubramanian is the Chairman and Managing Director of Bharatiya Mahila Bank Ltd. Prior to taking over as CMD of the Bank, she was the Executive Director of Punjab National Bank for over two years. She started her career with LIC. She joined the banking industry in February 1982 as a Specialist Officer in the Planning Stream of Bank of Baroda and rose to the rank of General Manager. In a career spanning over three decades, she has worked in various positions in the banking and allied areas. Key assignments held include General Manager South Zone, Bank of Baroda and Life Insurance Joint Venture Formation. She was closely associated with the transformation project of Bank of Baroda including rebranding and innovative HR initiatives.She holds a Masterís degree in Statistics from the University of Madras and a Masterís degree in Ancient Indian Culture from the University of Mumbai. 
                        3.   M.O. Rego  Shri M.O. Rego is the Deputy Managing Director of IDBI Bank. In his banking career of 31 years since 1984 when he joined IDBI, he has had extensive exposure in all areas of Core Banking and his forte lies in International Banking and Treasury. He took the lead in the area of foreign currency derivatives for liability management and as a result IDBI Bank was pioneer among all the Indian banks in the derivative market. He was MD & CEO of IDBI Home finance Ltd. which under his leadership grew from a fledgling company to become the fourth largest housing finance company. He holds B.Com from University of Pune and M.B.A (Finance) from Symbiosis Institute of Business Management, Pune. 
                        4.   Rakesh Sharma  Mr. Rakesh Sharma, the Managing Director & Chief Executive Officer of Lakshmi Vilas Bank was earlier with State Bank of India where his last assignment was that of Chief General Manager. Mr. Sharma has served SBI for over 33 years, heading different departments Ė both domestic as well as internationally. His expertise lies in retail and wholesale banking, asset liability management, loan syndication, trade finance and personnel development. During his stint in SBI, Mr. Sharma also administered banking operations for International Banking Group (IBG) encompassing consolidation of balance sheets for all the foreign offices of the bank. While posted at Tokyo, he was in charge of overall functioning of SBI branches in Japan. Shri Sharma holds a B.Com degree and Masters in Economics. 
                        5.   P.S. Jayakumar  Shri P. S. Jayakumar, serves as the Managing Director of Value and Budget Housing Corporation Pvt. Ltd. Mr. Jayakumar served as Head of Balance Sheet Optimisation - Treasury in Asia-Pacific at Citigroup Inc. since May 2008. Mr. Jayakumar started his career with Citibank in 1986 and has held many senior management positions there, including being Country Head for Consumer Business in India and Asia Pacific and Head for Consumer Lending Business in Asia Pacific. During his banking career, spanning 24 years, Mr. Jayakumar has contributed significantly to the development of the retail banking industry in India. Mr. Jayakumar served as Region Head of Asia-Pacific (Consumer Finance) at Citigroup Inc. He serves as a Director of Home First Finance Company India Private Limited and Value and Budget Housing Corporation Pvt. Ltd. He is a Gurukul Chevening Scholar from the London School of Economics and Political Science on Globalization. He holds a Master's Degree in Management from XLRI, Jamshedpur and a Bachelor Degree in Commerce from the University of Madras. 

Source : Govt of India announcements

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