Govt launches mission 'Indradhanush' to revamp PSU banks

7 point plan to revamp PSUs includes capital infusion and board appointments

Finance minister Arun Jaitley on Friday launched a seven pronged plan-- Indradhanush--to revamp functioning of public sector banks. 

The seven elements include appointments, board of bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms.  

Banks board of bureau will replace existing appointments board. Its members would be appointed in the next six months to be headed by the RBI governnor. 

Banks board bureau would also hold bad assets of public sector banks. 

Under recapitalisation plans for Public Sector Banks, 13 banks would get Rs 20,058 crore this financial year. The rest Rs 5,000 crore would be allocated based on efficiency criteria. 

SBI will get the  highest Rs 5,511 cr, followed by Bank of India at Rs 2,455 cr, IDBI at Rs 2,229 cr, PNB at Rs 1732 cr and IOB at Rs 2009 cr. 

Financial Services Secretary Hasmukh Adhia also announced the appointment of former Microsoft India Chairman Ravi Venkatesan as Chairman of Bank of Baroda. Other appointments include T N Manoharan as Non-Executive Chairman of Canara Bank, G Padmanabhan as Non-Executive Chairman of Bank of India. 

Rakesh Sharma Of Lakshmi Vilas Bank will be new MD & CEO Of Canara Bank

Six more Non-Executive Chairman posts to be filled in 6 months

"More flexibility would be given to banks to recruit staff at middle level," said Mehrishi. 

 

S.No	Name of Bank	Capital Allocation
		(Rs. in Crore)	Capital Adequecy Ratio (in %)
1	State Bank of India	5531	12
2	Bank of India	2455	11.2
3	IDBI	2229	11.9
4	Bank of Baroda	1786	13.1
5	Punjab National Bank	1,732	12.9
6	Canara Bank	947	10.7
7	Indian Overseas Bank	2,009	10.1
8	Union Bank of India	1,080	10.2
9	Corporation Bank	857	11.1
10	Andhra Bank	378	10.7
11	Bank of Maharashtra	394	11.9
12	Allahabad Bank	283	10.4
13	Dena Bank	407	10.9
Total		20,088