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NEW DELHI: The government on Monday appointed IDBI Bank MD and CEO Mahesh Kumar Jain as the fourth deputy governor of the RBI, sticking to the practice of designating a banker to the job.
The appointment comes over 10 months after S S Mundra’s term ended last July. This period has been particularly tumultuous for lenders, which are grappling with a record pile of bad debt. In addition, it saw the country’s largest fraud committed at the Punjab National Bank (PNB), as the second-largest public sector player was swindled of $2 billion by diamond traders Nirav Modi and Mehul Choksi, in connivance with a handful of executives. Apart from the governor, the RBI has four deputy governors — an economist, a banker and two internal officers.
Jain had moved to IDBI Bank a little over a year ago after spending a couple of years at Indian Bank. Jain will have a three-year term at the RBI, financial services secretary Rajeev Kumar tweeted. With the key appointment out of the way, the government plans to complete the process to select chiefs of nearly a dozen state-run lenders. This includes IDBI Bank and Allahabad Bank — where the board has taken away the powers of incumbent Usha Ananthasubramanian who has been chargesheeted in the Nirav Modi-Mehul Choksi fraud. Dena Bank, Andhra Bank, and Punjab & Sind Bank have been without managing directors and CEOs since the start of the 2018.
Vacancies are due to arise at Bank of Baroda, Canara Bank, Central Bank of India, Indian Bank and Syndicate Bank, among others.
The appointment comes over 10 months after S S Mundra’s term ended last July. This period has been particularly tumultuous for lenders, which are grappling with a record pile of bad debt. In addition, it saw the country’s largest fraud committed at the Punjab National Bank (PNB), as the second-largest public sector player was swindled of $2 billion by diamond traders Nirav Modi and Mehul Choksi, in connivance with a handful of executives. Apart from the governor, the RBI has four deputy governors — an economist, a banker and two internal officers.
Jain had moved to IDBI Bank a little over a year ago after spending a couple of years at Indian Bank. Jain will have a three-year term at the RBI, financial services secretary Rajeev Kumar tweeted. With the key appointment out of the way, the government plans to complete the process to select chiefs of nearly a dozen state-run lenders. This includes IDBI Bank and Allahabad Bank — where the board has taken away the powers of incumbent Usha Ananthasubramanian who has been chargesheeted in the Nirav Modi-Mehul Choksi fraud. Dena Bank, Andhra Bank, and Punjab & Sind Bank have been without managing directors and CEOs since the start of the 2018.
Vacancies are due to arise at Bank of Baroda, Canara Bank, Central Bank of India, Indian Bank and Syndicate Bank, among others.
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