Hunt for New UBI Chief Still On
The finance ministry has to begin its search for a new United Bank of India (UBI) chief all over again as the plan to appoint Mukesh Kumar Jain, executive director of Punjab & Sind Bank, as the new boss of the Kolkatabased bank has come unstuck, said people close to the development. Any delay in the appointment of the bank’s chief will make things worse for UBI, fighting one of the grimmest battles against rising bad loans. “Being headless is not a good situation. The lack of direction is going to hurt the lender, so it’s important that UBI gets a chairman fast,” said PwC’s associate director Robin Roy. Executive directors Deepak Narang and Sanjay Arya had been in charge of the bank since Archana Bhargava took voluntary retirement in February this year after the bank saw a steep rise in sticky loans resulting in .` 1,238-crore loss in the December quarter.
The finance ministry wanted Jain to fill the vacuum at UBI, but the Prime Minister’s Office under Manmohan Singh rejected his file, said people in the know. The bank has reported .` 469 crore net profit for the March quarter.