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Finance Ministry suggests extending terms of CEOs, EDs at state-owned banks


The finance ministry has recommended extending the tenure of three managing directors and chief executive officers (MDs and CEOs) and 11 executive directors (EDs) of public sector banks, for up to two years or until the age of retirement, whichever is earlier, as it looks to ensure stability and continuity at state-owned lenders amid the pandemic.
The Department of Financial Services (DFS), according to people in the know, has written to the Department of Personnel and Training (DoPT) suggesting the move, before the Banks Board Bureau (BBB) identifies new candidates for the role of bank chiefs.
The letter, written earlier this month, recommended a tenure extension for S S Mallikarjuna Rao, MD and CEO of Punjab National Bank, until January 31, 2022, when he is due for superannuation. Rao’s term as MD and CEO is set to end on September 18 this year. ....

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Finance Ministry moves file for term extension of 3 MDs, 10 EDs of PSU banks

Finance Ministry moves file for term extension of 3 MDs, 10 EDs of PSU banks
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Cabinet ready to clear bad bank proposal with government guarantee of Rs 31,000 crore


The Union Cabinet is likely to clear the proposal to set up a bad bank National Asset Reconstruction Company Limited (NARCL) with a government guarantee of about Rs 31,000 crore.
Sources said the proposal, announced in the budget, could be taken up at the meeting of the council of ministers this week as the plan is to start work on the formal structures of the bank from next month.
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They said the actual transfer of NPAs from the banks to NARCL would take place by the end of this fiscal.
Banks have reviewed 101 non-performing assets (NPAs) in the first phase and now plan to transfer 22 accounts amounting to roughly Rs 89,000 crore to the bad bank. ....

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