PSBs sore over FM push for IBA chief from pvt banks

Typically, the IBA chairman is chosen from public sector banks as they have majority in the bank body

While prodding the private sector lenders to be more active in BANCON – the annual banking conclave – finance minister P Chidambaram also suggested of making future chairpersons of Indian Banks’ Association from private sector banks.

Typically, the IBA chairman is selected from public sector banks as they have majority in the bank body, in terms of voting power.

In fact, few years back when a high profile private sector chief executive was proposed to head IBA, public sector banks shot down the proposal, conceded a public sector banker.

In a strange coincidence, chiefs of large private banks were conspicuous by their absence from BANCON 2012, a two day event, which is currently being held in Pune.

 

Benefit of being small

Smaller public sector banks are relieved that they did not received call from the finance ministry on Friday regarding the offer sale of Hindustan Copper.

The Finance ministry had asked the large banks and Life Insurance Corp to buy shares of Hindustan Copper. “Couple of years back we were asked to invest in NMDC, which is trading at nearly 50 per cent discount than the price at we brought the shares,” said a chief executive of a  government-owned bank.