The government extends tenures of 3 MD’S and 10 executive directors in PSBs

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Three managing directors and chief executive officers (MD & CEOs) and ten executive directors of public sector banks have their terms extended by ACC. The Department of Financial Services suggested that top executives of PSBs have their tenures extended as a result of the pandemic.

Punjab National Bank MD & CEO SS Mallikarjuna Rao has extended his tenure by about four-and-a-half months through January 31, 2022, when he becomes eligible for retirement. The appointment committee approved his extension on Friday (Brian). A similar increment will grant UCO Bank MD & CEO Atul Kumar Goel and Bank of Maharashtra MD & CEO AS Rajeev an additional two years.

While the Banks Board Bureau identifies new candidates for the job of bank CEOs, the finance ministry wrote to the Department of Personnel and Training (DoPT) suggesting that these MDs and EDs’ tenures be extended to maintain stability and continuity at state-owned lenders amid the pandemic.

The Department of Financial Services suggested that top executives of PSBs have their tenures extended as a result of the pandemic.

The ACC has also approved a two-year extension of the tenure of three executive directors based on an order from the Department of Personnel & Training. The three are Ajay K Khurana (Bank of Baroda), A Manimekhalai (Canara Bank), and PR Rajagopal (Bank of India).

Executive directors Sanjay Kumar and Vijay Dube (Punjab National Bank), Gopal Singh Gusain and Manas Ranjan Biswal (Union Bank of India), Vikramaditya Singh Khichi (Bank of Baroda), Shenoy Vishwanath Vittal (Indian Bank), and Alok Srivastava (Central Bank of India) have all had their terms extended until they reach retirement age.

A day earlier, finance minister Nirmala Sitharaman said state-run banks would undertake a nationwide loan outreach program around October amid fears that bankers are becoming risk-averse.

The credit flow has been muted in recent months, one of the biggest problems facing policymakers.

Credit to non-food banks increased by 5.9% in June, compared to 6% a year ago.That’s regardless of the fact that, as per CARE Ratings, daily surplus liquidity in the banking system averaged as much as Rs 6 lakh crore in July and August. Despite the current liquidity excess, this has been the case since June of this year.

From a 2.2% increase a year earlier, loans to industry decreased by 0.3% in June.

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