New BoB chief says external agency to probe scams

P S Jayakumar, who today took charge as the MD and CEO of the scam-hit Bank of Baroda (BoB), said he will soon hire an external accounting agency to identify factors that led to the Rs 6,175-crore alleged forex scam and the Rs 350-crore bill discounting fraud at its two branches.
"We will be appointing an external accounting firm to see what missed our eyes such as KYC (know-your-customer) issues that led to these alleged scams," Jayakumar, a former Citibanker, told reporters here today after assuming charge.
He also said that by next week, the bank will present a report to its audit committee detailing developments relating to the forex transactions that are being investigated by CBI and the Enforcement Directorate.

"We attach a very high level of seriousness to the (corruption) issue. My goal is to work with the team and get the details," Jayakumar said, adding that "we have to make appropriate changes in our system and train people accordingly so that such things do not happen again".
On possible measures the bank will take internally, he said, "Over the next one week, we will submit a proper plan to the audit committee on the matter... We have to make appropriate changes to the processes, structure and training so that a repeat of such instance doesn't happen."
Prior to this, Jayakumar worked with the private sector.

BoB had remained headless for the past 14 months. The government had earlier appointed former chairman of Microsoft India Ravi Venkatesan as the bank's non-executive Chairman.
On long-to-medium term plans, Jayakumar said, "Over the next 90 days, we plan to draw up our future plan where we will articulate what we are going to do. This will coincide with the third quarter results.