The Indian government has appointed Rajneesh Karnatak as the new Managing Director of Bank of India (BoI) and Debadatta Chand as the head of Bank of Baroda (BoB). The appointment of Karnatak, currently Executive Director of Union Bank of India, as MD and CEO of BoI is for a term of three years from the date of his assumption of office. Karnatak will replace Atanu Kumar Das, who completed his three-year term in January this year. Meanwhile, Chand, currently ED of BoB, has been appointed as MD of the same bank for a period of three years. However, Chand will take charge from July 1, after incumbent Sanjiv Chadha superannuates on June 30.
The appointments were made after the approval of the Appointments Committee of the Cabinet, which is headed by Prime Minister Narendra Modi. The Financial Services Institutions Bureau (FSIB), the headhunter for directors of state-owned banks and financial institutions, had recommended the names of Karnatak and Chand to the Department of Financial Services (DFS) for approval in January this year.
The appointment of Karnatak and Chand is expected to bring stability and experience to the management of BoI and BoB. Both banks have been facing challenges in recent years due to a range of issues including non-performing assets, weak financials, and governance issues. The appointment of experienced professionals like Karnatak and Chand is expected to help address these challenges and bring about a turnaround in the performance of the banks.
BoI and BoB are two of the largest public sector banks in India, with a combined asset base of over Rs. 20 lakh crore. The appointment of new leadership is expected to have a positive impact on the banking industry as a whole and provide a much-needed boost to the sector, which has been struggling due to a range of issues including a slowdown in the economy, rising bad loans, and increased competition from private sector banks and fintech companies.
Overall, the appointment of Rajneesh Karnatak and Debadatta Chand as the new heads of BoI and BoB respectively is a positive development for the Indian banking industry. Their experience and expertise are expected to help address the challenges faced by the banks and bring about a much-needed turnaround in their performance.