Page 7 - Banking Finance November 2024

BANK UPDATE

ment initiative providing employment- RBI re-appoints Vaidyanathan as IDFC First Bank MD
linked incentives for workers and com-
panies could boost labour demand and & CEO
facilitate job creation starting in The Reserve Bank of India (RBI) has approved the re-appointment of IDFC
FY2025, the bank said. First Bank's Managing Director (MD) and Chief Executive Officer (CEO) V
Vaidyanathan, effective from December 19, 2024, according to an exchange
Fake bank springs up in filing by the lender.

Chhattisgarh village, many In the filing, the bank said, " we wish to inform you that the RBI, vide its
communication dated September 19, 2024, has granted its approval for the
duped
re-appointment of Mr V Vaidyanathan as the MD and CEO of the bank for
On Sept 18, a small village in a period of three (3) years, effective from December 19, 2024, to Decem-
Chhattisgarh's Sakti district woke up to ber 18, 2027."
find that a 'State Bank of India' branch
had sprung up overnight. It sported the On April 27, 2024, the lender's board of directors had approved the re-ap-
pointment of Vaidyanathan for three years post the expiry of his current
logo, and cashiers and a manager who
looked very busy and business-like. term on December 18, 2024.
Chhapora village felt like it had arrived. He took over as the MD and CEO of IDFC First Bank in December 2018,
The trusting villagers had no way of following the merger of Capital First and IDFC Bank. Previously, he worked
knowing it was an elaborate fraud. with Citibank from 1990 to 2000 and joined ICICI Bank in 2000, where he
Even the house owner, who gave it on set up its Retail Banking division. He also served as the MD and CEO of ICICI
rent to 'SBI' had no clue it was fake. Prudential Life Insurance in 2009.

The villagers were, in fact, overjoyed
that the bank was recruiting, and the agency ICRA. Nageswaran also highlighted the cru-
'shortlisted candidates' from nearby Bond issuances in FY25 may surpass the cial role of agriculture in fuelling eco-
districts readily gave Rs 2 lakh to Rs 5 earlier peak of Rs 1.1 trillion in FY23, nomic growth.
lakh each for the jobs. The fake bank said the agency in a statement. Banks Speaking about 'Indian Economy and
even held training sessions for them. issued bonds worth Rs 1 trillion in FY24. Banking: Growth and Trends",
It took around a week for them to Public sector banks are likely to ac- Nageswaran focused on the signifi-
sense something was wrong - the new count for 82-85 per cent of bank bond cance of technological advancements
'employees' sat twiddling their thumbs issuances in FY25. Infrastructure bonds in driving growth and innovation in the
all day. are expected to account for more than industry.
two-thirds of the total share.
The fraud was exposed in around 10 He appreciated Indian Bank for its
days but by then, the kingpins of the Banks have issued bonds worth Rs 767 commitment to knowledge sharing
racket - who called themselves Rekha billion in FY25 yet, registering a year- and excellence and praised its MSME
Sahu, Mandir Das and Pankaj - had on-year growth of 225 per cent and Prerana programme, which focuses on
reaching 75 per cent of the total issu- training entrepreneurs.
vanished. Pankaj had posed as the
branch manager. ances in FY24. Indian Bank managing director and
CEO S L Jain, in his address, said, "We
Banks must adapt to mar-
Bank bond issuance likely are delighted to have Dr Nageswaran
ket changes sharing his insights on the Indian
to touch Rs. 1.2 trillion in economy and its implications on the
Chief economic advisor V Anantha
FY25: ICRA Nageswaran said that banks should banking sector."
Banks' borrowings through bonds is adapt in accordance with changing He further added that the interaction
expected to reach Rs 1.2-1.3 trillion in customer preferences and market dy- is set to benefit all the participants and
this financial year (FY25) amid tight li- namics in order to remain competitive help them better understand the
quidity conditions and credit outpacing while addressing an event organized challenges and opportunities in the
deposit growth, according to rating by public sector Indian Bank. industry.

BANKING FINANCE | NOVEMBER | 2024 | 7