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Govt launches mission 'Indradhanush' to revamp PSU banks

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

BS Reporter  |  Mumbai 

Arun Jaitley
Arun Jaitley

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

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

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.

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

First Published: Fri, August 14 2015. 16:42 IST