Page 5 - Banking Finance July 2022

BANK UPDATE

Banking

Bank credit growth hits 3- According to an official, who did not Banking Companies (Acquisition and
wish to be identified, banks have Transfer of Undertakings) Act, 1970,
year high of 13.1%
agreed to update the status of such has appointed A Manimekhalai Execu-
Bank credit grew 13.1 per cent year- borrowers in the Central Repository of tive Director, Canara Bank as Manag-
on-year (YoY) in the fortnight ended Information on Large Credits (CRILC) ing Director and Chief Executive Of-
June 3, the highest in the past three constituted by the sector regulator, ficer (MD & CEO) in Union Bank of
years, the latest data released by the Reserve Bank of India. lndia for a period of three years with
RBI shows. Growth in bank credit in effect from the date of assumption of
"Banks can take a decision based on this
the previous year was 5.7 per cent. office or until further order, whichever
information and decide not to lend
At an event, RBI Governor Shaktikanta until the borrower gets a clean chit," is earlier, Union Bank of India said in a
Das said: "We are seeing reasonably he said. regulatory filing to the stock exchanges.
satisfactory credit off take happening.
Indian Banks' Association chief execu-
It is about 12 per cent YoY, according Alok Kumar Choudhary
tive Sunil Mehta confirmed the devel-
to the latest data. Last year, around
opment and said this will bring more takes charge as MD of SBI
this time, credit growth was 5-6 per
discipline among the borrowers. Alok Kumar Choudhary has took charge
cent."
"Based on various parameters, includ- as the new Managing Director (MD) of
In the fortnight concerned, banks ex- ing early warning signals (EWS), banks State Bank of India (SBI). His appoint-
tended incremental credit of Rs 1.02 do such audits to take proactive ac- ment comes in the wake of the super-
trillion, taking the outstanding loans to tion," he said. annuation of Ashwani Bhatia as Man-
Rs 121.40 trillion. Credit growth was aging Director on May 31, 2022.
even higher in April 2019, when it grew A Manimekhalai, the new Choudhary was previously Deputy
14.19 per cent. The uptick comes amid Managing Director (Finance) at the
CEO of Union Bank of In-
a rise in lending rates. bank. As the new MD, he will be han-
dia dling retail business and operations.
Forensic Audit: Banks to The government appointed A
Per a notification issued by the Depart-
report non-cooperation Manimekhalai as Managing Director ment of Financial Services, the new
and Chief Executive Officer (MD and
Borrowers who don't cooperate in MD's appointment is with effect from
CEO) of Union Bank of India for a pe-
their forensic audits will now be re- the date of assumption of office and up
riod of three years.
ported to all banks. The move comes to the date of his superannuation (June
as lenders want to speed up the foren- We hereby inform that the Central 30, 2024), or until further order, which-
sic audit while preventing such bor- Government in exercise of the powers ever is earlier. Following Choudhary's
rowers from taking any more loans conferred by the proviso to clause (a) appointment, SBI now has four MDs.
from other banks. of sub-section (3) of Section 9 of the The other MDs are Challa Sreenivasulu

BANKING FINANCE | JULY | 2022 | 5