Ari­jit Basu to Head SBI Life

The Economic Times - - Money & Banking Bringing In A New Order -

State Bank of In­dia has ap­pointed Ari­jit Basu as the MD and CEO of SBI Life In­sur­ance. He will re­place Atanu Sen who is due to re­tire soon. Basu will face the chal­lenge of deal­ing with the in­sur­ance reg­u­la­tor, IRDA, which has told the in­surer to re­fund 275 crore to 7.5-lakh pol­icy hold­ers on the ground that it had col­lected ex­cess com­mis­sion in sell­ing its Dhan­rak­sha Plus pol­icy though SBI and its as­so­ciate banks. Among the other newly ap­pointed deputy MDs, An­shula Kant has been as­signed op­er­a­tions — na­tional bank­ing group, MG Vaidyan, re­tail strat­egy — na­tional bank­ing group, and Parveen Ku­mar Mal­ho­tra, group ex­ec­u­tive – stress as­set man­age­ment.


Cor­po­rate gov­er­nance and the qual­ity of boards have been a worry for both in­vestors and reg­u­la­tors. Re­cently, an RBI of­fi­cial was in for a shock when the CEOs of state-owned banks com­plained about some board mem­bers. The head of a pub­lic sec­tor bank said he and CEOs of other PSU banks were un­der pres­sure from some di­rec­tors ap­pointed by the govern­ment to ap­prove se­lect loan pro­pos­als. If the bank man­age­ments refuse, the di­rec­tors — who are pro­fes­sion­als — would threaten not to clear the quar­terly re­sults. That is why the PJ Nayak com­mit­tee re­port to re­view gov­er­nance of boards may have come as a bless­ing in dis­guise for these banks.

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