FinMin shortlists B Sriram, V G Kannan for MD posts of SBI

The Finance Ministry has shortlisted two senior officials of State Bank of India (SBI) for the post of managing directors of the country's largest bank.

B Sriram, managing director of State Bank of Bikaner and Jaipur (SBBJ) and V G Kannan, managing director of SBI Capital Markets Ltd, are contenders for the post of two managing directors of the SBI, sources said.

Names of shortlisted candidates have been sent to Finance Minister for his approval, sources said, adding that the final call on the appointment will be taken by the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister Narendra Modi.

Vacancy for two managing directors were created after retirement of Hemant Contractor and S Viswanathan on April 30, 2014.

Besides SBI Chairperson Arundhati Bhattacharya, the other two serving managing directors are A Krishna Kumar and P Pradeep Kumar.

As per the State Bank of India Act 1955, not more than four managing directors may be appointed by the government in consultation with the Reserve Bank of India.

Senior most managing director Krishna Kumar will retire in November this year, while Pradeep Kumar will serve the bank till October next year.

Meanwhile, SBI reported 8 per cent decline in net profit at Rs 3,041 crore for the fourth quarter ended March 31, 2014 on account of higher provisioning against bad loans.

The bank had a net profit of Rs 3,299 crore on standalone basis in the January-March quarter of the previous fiscal.

The bank's total income rose to Rs 42,443 crore in Q4, 2013-14, from Rs 36,331 crore in the year ago period.

Provisions against bad loans increased significantly in Q4 to Rs 5,884 crore from Rs 3,974 crore in the year-ago period.

The gross Non Performing Assets (NPAs) as a percentage of total loan rose to 4.95 per cent during the quarter, from 4.75 per cent in the year ago period.

The net NPA also increased to 2.57 per cent as compared to 2.10 per cent in the March 31, 2013.