After RBI guv, buzz shifts to an extension for SBI’s Bhattacharya
With a new RBI governor in place, all eyes are now on SBI chairman Arundhati Bhattacharya. With Bhattacharya’s term at SBI coming to an end in September, sources said a final decision on her extension would be taken in the next couple of weeks. The decision will be taken jointly by the Banks Board Bureau (BBB) and the finance ministry.
“No decision has been taken yet… we are looking into it, an extension for Bhattacharya is being considered,” a senior government official who did not wish to be identified told HT.
The bank’s employees, too, want an extension for Bhattacharya. “With so many things, including merger and NPA reduction, it is in the interest of the bank that he she be given an extension,” a senior official of the bank said.
Bhattacharya, the first woman chief of SBI, has been instrumental in chalking out a growth path for the bank in difficult times and has sought to increase the remunerations for bank employees. While she has been vocal about dealing with wilful defaulters, the merger of SBI with associate banks and Bharatiya Mahila Bank remains to be completed.
“The (merger) process is underway and we expect it to be completebythe fiscalyear-end,” Bhattacharya had said earlier.
According to insiders, banks are already reeling under the pressure of non-performing assets (NPAs), and in such a scenario, continuity becomes key. “Continuity of leadership is important and in other cases, too, the performing chiefs of banks will be considered for extensions,” said the government official quoted above.
Last year, the government approved the proposal to appoint private sector executives to head large state-owned lenders. The heads of Canara Bank and Bank of Baroda were appointed from amongst them.
SBI CFO Anshula Kant, SBI Mututal Fund MD and CEO Dinesh Khara and SBI MD Praveen Kumar Gupta are said to be considered for the top post at SBI.