Page 6 - Banking Finance July 2022

BANK UPDATE

Setty, Swaminathan J and Ashwini posals involving amounts of 500 crore integrate Indian companies with glo-
Kumar Tewari. and above to shield officials from any bal supply chain through local produc-
subsequent scrutiny by investigative tion of finished pro-ducts as well as
R Subramaniakumar, new agencies, said people with knowledge suppliers of critical inputs, such as auto
of the matter. parts or semiconductors. The govern-
MD & CEO of RBL Bank ment had adopted a strategy for
The committee, which will be set up by
RBL Bank has appointed R merger of public sector banks to give
the Indian Banks' Association, will com-
Subramaniakumar as its Managing Di- them much-needed scale as even op-
prise financial services experts and
rector and CEO for a period of three erations of SBI, the country's largest
persons of eminence from the industry,
years with effect from June 23. After lender, does not compare with global
they said. It will conduct process vali-
Subramaniakumar's appointment, the giants.
dation of the restructuring without in-
former interim MD and CEO of RBL
terfering in the commercial judgment The PM also launched a special series
Bank Rajeev Ahuja will work as the
of the lenders. of coins with Azadi ka Amrit Mahotsav
Executive Director of the bank.
design that will be visually impaired-
For loans below 500 crore, individual
Ahuja was appointed as the interim friendly. Modi listed his government's
banks can set up similar committees of
MD and CEO after Reserve Bank of financial inclusion initiatives as a key
their own, said a senior banker who did
India's (RBI) and shareholders' ap- area of better delivery of benefits and
not want to be identified.
proval, from December 25, 2021 to argued that his administration had
June 24, 2022, or till the appointment "The idea is to enhance the comfort shifted the focus of policymaking from
and confidence of lenders in large
of a regular MD and CEO, whichever a government-centric approach to
value restructuring cases," he said.
was earlier, as per the exchange filing. people centric.
The filing further stated that Vishwavir
PM Modi to banks: Focus
Ahuja's term as the Managing Direc- PSBs to pay Rs. 8,000 crore
tor and CEO ended on June 23. It also on bigger role in global
dividend to centre
reads, "The board placed on record its
business PSU banks have paid substantial divi-
deep appreciation for his stellar contri-
Prime Minister Narendra Modi dends to their shareholders, many of
bution to the manifold growth of the
stressed upon the need for Indian them after a gap of nearly six years,
RBL Bank during his tenure."
banks to focus on playing a bigger role as credit growth accelerated and as-
In early June, the central bank had
in global trade and supply chain, while set quality improved.
given its approval to RBL to appoint
seeking better financial and corporate The government stands to be the big-
Subramaniakumar as the bank's new
governance. gest beneficiary of the generous
MD and CEO.
Inaugurating the finance ministry's payouts by the banks and is expected
R Subramaniakumar has over four de-
iconic week celebrations, where a plat- to net nearly Rs. 8,000 crore. PSU
cades of experience across banking
form for financial inclusion was un- banks, barring Central Bank of India,
verticals and has held board level posi-
veiled for a dozen credit-linked govern- which is still under the Reserve Bank
tions for around five years including on
ment schemes, the PM said that it was of India's (RBI's) restrictive prompt
the Board of Overseas JV Bank. His
now time to work on financial solu- corrective action framework (PCA) for
banking career began in 1980 with
tions for people around the world. weak banks, reported improved perfor-
public lender Punjab National Bank
mance in the year ended 31 March.
(PNB) and has worked in positions like "The world is looking at us not just as
a big consumer market but looking at The payouts by PSU banks come as a
front desk, General Manager.
us with hope and confidence as a ca- minor relief to the government, which
pable, game-changing, creative, inno- is struggling to generate resources
IBA expert panel to vet
vative ecosystem," Modi said. The amid higher spending on subsidies and
loan recast proposals comments on banks playing a bigger tax cuts to cool inflation. The RBI also
Banks will jointly set up an expert com- role internationally come at a time approved a lower-than-expected Rs.
mittee to vet loan restructuring pro- when the government is seeking to 30,307 crore as dividend to the govern-
6 | 2022 | JULY | BANKING FINANCE