Punjab & Sind Bank board meets today

Punjab & Sind Bank has convened an emergency board meeting on Monday to discuss various alternatives to run the bank following its chairman and managing director NS Gujaral's decision to proceed on leave from Friday.

Bank sources also told Business Standard that Punjab & Sind Bank's Executive Director Prakash Singh has been asked to take possession of some sensitive vigilance documents that had been referred to Gujaral earlier.

They added that Singh in turn had instructed the bank's vigilance department to ensure that files were not tampered. When contacted, Singh refused to discuss the matter.

On Monday, the board will consider a proposal to either give powers to its executive director to officiate as the chairman and managing director or constitute a committee to oversee the operations. Singh is due to be promoted as chairman in March-April next year, but is likely to be moved to United Bank of India.

No agenda for the board meeting has been circulated and neither has a formal notice been issued. Directors were informed on Saturday evening about the meeting which is scheduled for Monday afternoon, sources said.

"We have just been asked to attend the meeting and were told that the agenda is confidential," a Punjab & Sind Bank director said.

Gujaral is said to have proceeded on leave following instructions from the finance ministry last week. When contacted, Gujaral, however, said he was unwell and had, therefore, proceeded on leave.

Finance ministry officials have refused to divulge details of the decision. Bank sources, however, said Chief Vigilance Commissioner P Shankar had asked Gujaral to initiate action in certain cases, and in the absence of any progress, had written to the finance ministry seeking action against the errant executives and also against Gujaral.

Gujaral has dismissed these comments and said he was in a nursing home when contacted. Shankar declined to discuss the matter and Financial Sector Secretary NS Sisodia was not available for comments.

Some executives in the bank have been unhappy with the state of affairs and so have the directors on Punjab & Sind Bank's board for not been adequately informed of the management's decisions.