Rajnish Kumar is new SBI chairman
account for almost one-tenth of its total advances. SBI is also the lead bank in a majority of the 40 cases referred for bankruptcy proceedings at the National Company Law Tribunal.
“Asset quality is a challenge. So that will definitely receive priority,” Kumar told CNBC TV-18 in an interview. “We are undergoing a major transformation in terms of adoption of new technology and digitisation. So these two things are on the top of my mind.”
Kumar’s predecessor Bhattacharya, who was the first woman chairperson of the 200-year-old state-owned bank, was instrumental in the merger of SBI’S associate banks and Bharatiya Mahila Bank with the SBI. In her tenure, the bank saw the listing of its life insurance subsidiary, the first among public sector banks.
She also steered the bank through the demonetisation process that resulted in a cash crunch, making currency available to customers across its 16,000 branches and ATMS.
“NPA recovery especially in the case of big corporate loans and a smooth merger should be Kumar’s priorities. Investors got a shock from the associate banks’s losses,” said Hemindra Hazari, an independent banking analyst. “Secondly, Kumar should be outspoken in defending the autonomy of public sector banks.”
Kumar’s name was recommended for SBI’S top post by the Vinod Rai-led Bank Board Bureau after interviews with candidates took place in June.
Besides Kumar, other SBI managing directors including B Sriram, Dinesh Kumar Khara and PK Gupta appeared for the interview. Sriram is in charge of corporate banking. Khara and Gupta look after associates and subsidiaries, and compliance and risk respectively.
“Kumar was the unanimous choice...however, it was a tough choice. But Kumar’s global experience, long stint in credit and practical wisdom gave him the edge over others,” said a senior government official aware of the matter.