Tag: BBB

Soma Sankara Prasad likely to be next UCO Bank MD, BFSI News, ET BFSI

Banking & Finance

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The government is considering appointing Soma Sankara Prasad, the deputy managing director of State Bank of India, as managing director of Kolkata-based UCO Bank. The Banks Board Bureau (BBB) has suggested the name of UCO Bank Managing Director Atul Kumar Goel for heading Punjab National Bank as MD. The managing director position of PNB will fall vacant after the superannuation of S S Mallikarjuna Rao in January.

According to sources, since Prasad was in the reserve list when the interview for appointment for managing director of Indian Bank took place earlier this year, he has been recommended to head UCO Bank subject to various clearances including vigilance.

The final view in this regard would be taken by the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister, sources said.

The BBB, the headhunter for state-owned banks and financial institutions, in May had conducted interviews for the position of MD of Indian Bank. Post interview, Shanti Lal Jain was recommended for the post while Prasad was the candidate on the reserve list.

Last month, the Reserve Bank removed UCO Bank from its Prompt Corrective Action (PCA) Framework following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

The lender also apprised the RBI of the structural and systemic improvements that it has put in place, which would help the bank in continuing to meet the financial commitments. The public sector bank plunged under PCA in May 2017.

PCA is triggered when banks breach certain regulatory requirements such as return on asset, minimum capital and quantum of the non-performing asset.

The restrictions disable banks in several ways to lend freely and force them to operate under a restrictive environment that turns out to be a hurdle to growth.

UCO Bank had posted over a four-fold jump in its net profit to Rs 101.81 crore for the first quarter of the fiscal ended June 30, as bad loans fell significantly.

The lender trimmed its gross non-performing assets (NPAs or bad loans) significantly to 9.37 per cent of the gross advances as of June 30, 2021, as against 14.38 per cent at June-end 2020.

The net NPAs were down at 3.85 per cent (Rs 4,387.25 crore) from 4.95 per cent (Rs 5,138.18 crore). PTI DP ANZ MR



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Bank Board Bureau recommends Atul Kumar Goel for PNB MD post, BFSI News, ET BFSI

Banking & Finance

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Banks Board Bureau (BBB) on Wednesday recommended Atul Kumar Goel for the post of Managing Director of Punjab National Bank.

Currently, Goel heads UCO Bank, which was removed from Prompt Corrective Action (PCA) restrictions. He will succeed SS Mallikarjuna Rao, who was recently given an extension till January 2022.

BBB interviewed 11 candidates for the post of MD and CEO of PNB – the country’s second-largest public sector lender. BBB is headed by former secretary of the Department of Personnel and Training BP Sharma.

“Keeping in view their performance at the interface, their overall experience and the extant parameters, the Bureau recommends Atul Kumar Goel for the position of MD and CEO of PNB,” BBB said in a statement.

The incoming managing director and chief executive will hold office for a term of three years from the date of entering office.

The name of the selected candidate would go for final approval to the Appointments Committee of Cabinet (ACC), headed by the Prime Minister.

The secretary of the Department of Financial Services, secretary of Department of Public Enterprises and the RBI deputy governor in charge of banking are part of BBB.

In 2016, the government approved the constitution of BBB as a body of eminent professionals and officials to make recommendations for the appointment of whole-time directors as well as non-executive chairpersons of PSBs and state-owned financial institutions.



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Soon, PSBs may appoint specialists to manage NPAs, professionalise boards, BFSI News, ET BFSI

Banking & Finance

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After the mega mergers, it’s time for an overhaul at public sector banks.

The government is looking to measures to strengthen corporate governance and human resource practices in nationalised

banks. It plans a diversified board structure, strengthening of board-level committees and a robust performance management system for employees.

The government wants to further professionalise the boards of PSBs and bring experts in risk management, information technology and human resource management.

The key proposals include longer tenure for executive directors, hiring of specialists in areas such as NPA management and fast track promotion for high performers.

Leadership plan

These discussions may be further taken up with the Banks Board Bureau to formulate a long-term strategy.

One of the key mandates of BBB is to help banks to develop a robust leadership succession plan for critical positions and advise the government on evolving suitable training and development programmes for management personnel.

BBB will also maintain a database on performance of the officers of PSBs. This will have information regarding postings, placements, promotions and vigilance of senior officers.

Ease 4.0

Banks through Ease 4.0 may also take up these issues at their board level. Launched in January 2018, Enhanced Access and Service Excellence (Ease) is the common reform agenda for all public sector banks aimed at institutionalising clean and smart banking.

State-run banks will focus on co-lending with non-banking firms, digital agriculture financing, synergies and technological resilience for 24×7 banking as part of their reforms agenda for this fiscal.

This year PSBs will focus to introduce and promote new analytics-based offers to existing retail customers like pre-approved car loans, EMI offers on e-commerce purchases and also for existing MSME customers.

Such offers will be based on bank transactions, income tax and GST returns, transactions on e-commerce portals, and other operational data.

As per the reform agenda, banks will leverage partnerships with third parties, including agritech firms and strive to automate processing and sanction of agricultural loans based on field visits, borrower interaction, and risk assessment in states with digitised land records.



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S&P revises rating outlook on ICICI Bank to ‘stable’

Banking & Finance

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S&P Global Ratings has revised its rating outlook on ICICI Bank to stable from negative.

It has affirmed its ‘BBB-’ long-term and ‘A-3’ short-term issuer credit ratings on the private sector lender as well as its ‘BBB-’ long-term issue rating on the bank’s senior notes.

“We revised the rating outlook to reflect our view that ICICI Bank will maintain strong capital position over the next 24 months. The bank will benefit from the sale of stake in subsidiaries and gradual normalisation of earnings, which should reduce risks associated with its capital position,” S&P Global Ratings said in a statement on Friday.

The agency expects ICICI Bank will maintain a risk-adjusted capital ratio of more than 10 per cent over the next 24 months. “Our expectation factors in 13 per cent to 14 per cent credit growth for the bank, an improvement in earnings, and sale of stake in insurance subsidiaries over the period,” it said.

Stressed loans to peak

The agency however expects ICICI Bank’s stressed loans (non performing loans and restructured loans) to remain high when compared to that of international peers.

It said the bank’s stressed loans may peak at 6 per cent of total loans by March 31, but it would be lower than its estimate of 11-12 per cent for the Indian banking industry.

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BBB recommends Harsha Bangari for MD post at Exim Bank

Banking & Finance

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The Banks Board Bureau (BBB) has recommended Harsha Bangari to the position of Managing Director in Export-Import Bank of India. Currently, Bangari is Deputy Managing Director (DMD) in Exim Bank.

The Board also recommended the name of Samuel Joseph Jebaraj, DMD, IDBI Bank, as the candidate on the Reserve List for the vacancy of MD in Exim Bank.

The Government had appointed the incumbent MD David Rasquinha for five years on July 20, 2014.

Bangari joined Exim Bank in 1995. Before her elevation as DMD, she was the Chief General Manager and Chief Financial Officer of Exim Bank.

Samuel Joseph’s was appointed as DMD of IDBI Bank for three years with effect from September 19, 2019. Prior to joining IDBI Bank, he was Chief General Manager with Exim Bank.

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