Syndicate Bank has terminated the services of CMD SK Jain, who was suspended following his arrest by the Central Bureau of Investigation (CBI) for allegedly accepting bribe from companies including Bhushan Steel and Prakash Industries to extend their credit limits.
The bank informed the Bombay Stock Exchange about the termination on Tuesday. Besides Jain, the CBI has booked 11 others under relevant sections of Prevention of Corruption Act, 1988 and criminal conspiracy.
Following the incident, the government has decided to issue fresh guidelines for appointment of directors on board of public sector banks and more professionals are likely to be inducted, financial services secretary GS Sandhu had said.
Finance minister Arun Jaitley has also stressed the need to professionalise bank boards. According to sources, if specialists are brought in instead of filling up board slots in “arbitrary” manner, it would help in overall business and HR-related issues.