Govt extends Indian Bank CEO's term

T M Bhasin has been given a sixteen-month extension in the capacity of a CEO and not CMD though

T M Bhasin, chairman and managing director (CMD) of Indian Bank, has been given a one-year two-month extension to serve in the Chennai-based lender. However, according to the recent practice set by the government, Bhasin will be the chief executive officer and managing director, and not CMD — till May 2016 — when he turns 60.

Bhasin was appointed as CMD of Indian Bank of April 1, 2010, and was given a five-year term, which will end on March 31. He was also the chairman of the Indian Banks’ Association.

In October last year, the government declined to extend Punjab National Bank (PNB) CMD K R Kamath’s term even though he had one year of service left. Like Bhasin, Kamath was given a five-year term in PNB when he was appointed on October 28, 2009.

Arun Kaul, CMD of Kolkata-based UCO Bank, will also complete his five-year term on August 31 this year and will still have about one year to attain superannuation.

In December 2014, the government had decided to split the CMD post into managing director, CEO and non-executive chairman in state-run banks.

The government has already appointed CEO and MDs in four banks — Indian Overseas Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.

It is also in the process of appointing CEO and MDs in large public sector banks such as PNB, Bank of Baroda, Canara Bank, Bank of India and IDBI Bank.  Separately, a non-executive chairman will also be appointed in these banks.

Currently, CEO posts in four banks are vacant – PNB, BoB, Canara Bank and Syndicate Bank.