Ahead Of Budget, Govt Appoints PNB & Indian Bank Chiefs 

The appointments have come just ahead of the Budget. Sources said the government intends to come up with several schemes to boost both consumption and industrial investment, in order to address the slowdown in the economy, in which, PSU banks will be expected to play a vital role.

The Department of Personnel & Training (DoPT) said in the order that both officers will hold their respective offices for a period of three years with effect from the date of assumption of charge of the post or until further orders, whichever is earlier. It added that Binod Kumar “shall be eligible for extension of tenure, after a review of his performance, for a further period of two years, or until further order, whichever is earlier.” 

The DoPT also wrote in the order, “The Appointments Committee of the Cabinet (ACC) has approved the proposal from the Department of Financial Services to appoint Ashok Chandra, executive director at Canara Bank, as the Managing Director (MD) and Chief Executive Officer (CEO) of Punjab National Bank (PNB) for a period of three years.”

Incidentally the order, dated January 15, 2025, was issued on January 16, as the appointment was made following the recommendation of the Financial Services Institutions Bureau (FSIB). In a separate order, the DoPT said the ACC had also approved the appointment of Binod Kumar, executive director at PNB, as the MD and CEO of Indian Bank.

“The existing banks have been performing well, and now, with greater autonomy, the focus is on further improving the bottomline of these lenders. Therefore, a lot depends on the top management,” a senior PSU bank executive said. After the merger of PSU banks over the last decade, the performance of the bank chiefs are being closely monitored. 

Union Bank of India and Central Bank of India are also expected to get new chiefs by the middle of this year. Union Bank chief A Manimekhalai will complete her term in June, while M V Rao, who is currently heading Central Bank, will also finish his term on July 31. Rao, who was appointed head of Central Bank in 2021, was given an extension in November 2023.

It is to be noted here that the FSIB, which conducted the selection process for the chiefs of PNB and Indian Bank, had interviewed 15 candidates and recommended Binod Kumar based on his performance, experience and other criteria.

The FSIB had initially selected Asheesh Pandey for the Indian Bank position in April, but it was learned that the Reserve Bank of India (RBI) raised objections about his appointment. This led the FSIB to hold a fresh screening process and interview, following which it had recommended the name of Binod Kumar. 

Chandra’s impeccable career in the banking sector, which began in 1991 with Corporation Bank, continues today. He holds a postgraduate degree in Economics and is a certified associate of the Indian Institute of Bankers.

PNB has registered a robust growth in both credit and deposits. With overall credit growth slowing for the banks, the onus will be on Chandra and other members of top management of the lenders to drive business boost current account savings account (CASA) portfolio, augment loans, especially to the micro small and medium enterprises (MSME) industry to power economic growth.

For the post in the PNB, the FSIB had interviewed 16 candidates. The FSIB is led by Bhanu Pratap Sharma, former secretary of the DoPT. Other members include Animesh Chauhan, Deepak Singhal and Shailendra Bhandari.

Meanwhile, Nidhu Saxena, MD & CEO, Bank of Maharashtra, took over in March last year. All eyes will be on Swarup Kumar Saha, MD & CEO, Punjab and Sind Bank. Saha, appointed as the head of the bank in 2022, but is eligible for extension till 2027. There were reports last year that Saha would be joining Bandhan Bank as its MD & CEO.

However, Partha Pratim Sengupta, who was heading Indian Overseas Bank after serving at the State Bank of India, was appointed as the head of Bandhan Bank after Chandra Shekhar Ghosh, the founding MD and CEO of the private lender, retired.