State Bank of India completes promotion exercise, elevates 14 to Dy MD

State Bank of India has completed the promotion exercise at the top and senior management levels, and elevated 14 chief managers as deputy managing directors (DMDs). The lender has also elevated 30 general managers as chief general managers.

Given the extended lockdown, the bank extensively used its digital platform, including video conferencing, to carry out the performance review and promotion exercise, said senior bank executives.

New faces at the DMD level include Arun Mehta, who is heading SBI Capital Markets; Vinay Tonse, Prabodh Parikh, Natrajan Sundar, A K Tiwari, S Salee, Rana Ashutosh Kumar Singh and Saloni Narayan. The process of their appointments is underway.

The number of people elevated to the DMD post was higher this year, as many bankers at this level moved to head other public sector banks. Some of them were Padmaja Chunduru, as managing director of Indian Bank, Mrutunjaya Mahapatra as head of Syndicate Bank (now merged with Canara Bank), and Pallab Mahapatra, as MD and CEO of Central Bank of India.

Prashant Kumar, chief financial officer, moved to YES Bank as MD and CEO as part of the plan to salvage the ailing private bank. Further, there are many retirements scheduled in the current financial year, bankers said.

At the level below the CGM’s post, the bank promoted over 60 to the post of general manager, and over 140 as deputy general managers.

RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework

Economy & Policy:

The Reserve Bank of India (RBI) removed three commercial banks – Allahabad, Corporation and Dhanlaxmi -- from the prompt corrective action (PCA) framework. This will allow them to carry on normal business, especially lending.

Early this month, RBI had taken out three public sector banks - Bank of India (BoI), Bank of Maharashtra (Mahabank), and Oriental Bank of Commerce (OBC) out of the framework.
Mumbai-based IDBI Bank, Central Bank of India, Dena Bank, Chennai-based Indian Overseas Bank and two Kolkata-based lenders -- United Bank of India and UCO Bank -- are still under the PCA framework.

RBI in a statement said the Board for Financial Supervision (BFS), in its meeting held on February 26, 2019 reviewed the performance of banks under PCA. BFS noted that the Government of India has infused fresh capital on February 21, 2019 into various banks including some of the banks currently under the PCA framework.

RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework

Two state-owned banks -- Allahabad Bank and Corporation Bank -- had received Rs 6,896 crore and Rs 9,086 crore respectively as capital from the Government of India. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.


 These two banks have also made the necessary disclosures to the Stock Exchange that post infusion of capital, the capital adequacy ratio (CAR), Common Equity Tier 1, Net Non-Performing Assets and Leverage Ratios are no longer in breach of the PCA thresholds...Read More