Page 8 - Banking Finance June 2017

BANK UPDATE

Banks reshuffle their Centre planning to increase time limit for declaring
Chiefs overdue MSME loans as NPA
Recently, the Managing Director of The Central Government is considering doubling the 90-day limit to 180 days for
PNB - Usha Ananthasubramanian banks to declare overdue MSME loans as non-performing
shifted to assets (NPAs) or bad loans.
Calcutta- "The Ministry has already taken up the issue and it is being
based considered at a much higher level," Medium, Small and Mi-
Allahabad cro Enterprises (MSME) Secretary KK Jalan said after re-
Bank, while peated pleas by various industry bodies at the meeting of
the head of Bank of India Melwyn the National Board of MSMEs, chaired by Minister Kalraj
Rego moved to Syndicate Bank. The Mishra.
Appointments Committee of the While seven Finance Facilitation Centers have been set up by the Centre (and
Cabinet has appointed Rajkiran Rai G, plans to set up five more), not all are functioning efficiently, . Some of these
ED of Oriental Bank of Commerce, as were also being run by industry bodies such as Assocham and the Confederation
MD and CEO of Union Bank.
of Indian Industry. A mobile app "MyMSME" was also launched by the Minister
R Subramaniakumar, Indian Overseas for Urban Development Venkaiah Naidu.
Bank ED, has been elevated to MD Delayed payments
and CEO. Sunil Mehta, executive di- "A total of 3,700 cases of delayed payments involving Rs.1,650 crore have been
rector in Corporation Bank, shall lead put on the portal," said Mishra, adding that this would facilitate monitoring of
PNB in place of Ananthasubramanian. delayed payments, which is probably the "single biggest problem for start-ups."
Canara Bank ED Dinabandhu
Mohapatra was promoted as MD and The MSME sector(90% of it is covered by micro units) accounts for 45 % of total
CEO of BoI. R.A. Sankara Narayanan, NPAs or bad loans in the banking system.
Executive Director of BoI became MD According to RBI data, the number of sick MSMEs rose to 4,86,291 in 2015-16,
and CEO of Vijaya Bank. with Rs. 40,642 crore outstanding to banks.
SBI workforce to reduce
Bank board's proposal on salary gets RBI shock
by 10% very soon The Banks Board Bureau, an advisory body created by
Post merger of six entities, State the government in April 2016, proposed recommenda-
Bank of India (SBI) tions on the roles, responsibilities, remuneration and
tends to reduce its service conditions of non-executive chairmen as well as
workforce as a re- the remuneration of non-executive directors in PSBs 'to
sult of attrition, digi- ensure that level-playing field with private sector banks
tization and others is established to attract high quality personages'.
"Manpower will go RBI proposed its Prompt Corrective Action (PCA) norms that banks, which do not
down over a period of time. Around meet financial parameters set by the central bank, would face restraints on
10 per cent reduction in two years compensations for Directors and CEOs. The restriction on compensation has been
may be a possibility," said Rajnish suggested for banks that breach the third-level threshold when it comes to eq-
Kumar, Managing Director, SBI. uity, bad loans or profitability. Indian Overseas Bank, with NPAs of 14% has al-
The Bank had approximately 2,07,000 ready breached the third-level threshold.
people in its workforce and the
merger of six entities from April 1 SBI invites Independent Directors
added around 70,000 employees. SBI's independent director Suni Mehta resigns and 3 other directors completed
"Post merger we will be at 2,77,000 their 3 year terms resulting into requirement of Independent Directors on the
people in SBI. This may come down to Board. The SBI had invited applications to appoint 4 directors as approved by
2,60,000 by March 2019," Kumar said. the Shareholders. The Shareholders' Meeting would be held on June 15.

8 | 2017 | JUNE | BANKING FINANCE

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