On Monday, the government appointed new heads of four large government owned banks. These new heads will serve as the Managing Directors (MDs) for 3 years. Challa Sreenivasulu Setty has been appointed as the new MD of State Bank of India (SBI) by the Appointments Committee of the Cabinet (ACC) after the proposal it received from the Department of the Financial Services. Setty served as the Deputy MD in SBI as of now.
Additionally, the ACC has also appointed Lingam Venkat Prabhakar as the MD and Chief Executive Officer (CEO) of Canara Bank, Sanjiv Chadha has been appointed as the MD and CEO of Bank of Baroda, and lastly, Atanu Kumar Das will serve as the MD and CEO of Bank of India. They will, too, serve for 3 years.
After the news hit the market, the share price of all these 4 banks saw an upward march on Tuesday.
Before being appointed as the MD of bank of Baroda, Chadha was taking care of the SBI Capital Markets. He will be replacing P S Jayakumar.
Atani Kumar Das is an executive director of Bank of India, and Prabhakar, who currently is the executive director of PNB (Punjab National Bank) and will replace R A Sankara Narayanan by the end of January after his retirement.
As Bank of Baroda has been merged with 2 smaller government owned public sector banks – Vijaya Bank and Dena Bank – now the government will be merging Canara Bank with Syndicate Bank, and the process has already started.
On the 8th of January, many members of India’s top Central Trade Unions went on strike because the government did not address their grievances. The members were unhappy about the merger of banks as well.