In an attempt to improve the functioning of Public Sector Banks in the country, the government on Thursday appointed non-executive chairpersons for Punjab and Sind Bank, Dena Bank, and Central Bank of India.
While Charan Singh was appointed the chairman of Punjab and Sind Bank, Anjali Bansal was made the chairperson of Dena Bank. Tapan Ray was appointed as chairperson of Central Bank of India.
The chairpersons were appointed following the suggestions of the Banks Board Bureau, which is led by Bhanu Pratap Sharma.
The primary purpose of appointing non-executive chairpersons at PSBs is to separate the responsibilities of the chairperson and the managing directors, which is expected to help them perform better.
All three appointees carry with them vast experience in the field. While Charan Singh was a former director of the Reserve Bank of India, Anjali Bansal served as the former MD of TPG Pvt. Equity, and Tapan Ray served as the Secretary in the Ministry of Corporate Affairs.
All the banks in question have been under tremendous pressure to reduce their NPAs, with Dena Bank registering a loss of Rs.1,225 crore in the last quarter of 2017-2018. Punjab and Sind Bank’s losses for the same period were Rs.525 crore. Central Bank of India, on the other hand, had losses to the tune of Rs.2,113 crore for the fourth quarter.
The Reserve Bank of India has listed 11 public sector banks under its prompt corrective action (PCA) measures.
Read more: Allahabad Bank put under PCA by the RBI.
The government is likely to appoint new chairpersons for other PSBs as well, with it having reshuffled the management at IDBI Bank, Indian Bank, Bank of India, and PNB recently.