BoI, BoB to see change at the top | india | Hindustan Times
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BoI, BoB to see change at the top

Two large sized government banks — Bank of India and Bank of Baroda — will see a change in guard by the year end. While UCO Bank chairman and managing director, Arun Kaul, is likely to take over Bank of Baroda, Indian Bank chief TM Bhasin would soon take charge of Bank of India.

india Updated: Aug 30, 2012 22:10 IST
HT Correspondent

Two large sized government banks — Bank of India and Bank of Baroda — will see a change in guard by the year end. While UCO Bank chairman and managing director, Arun Kaul, is likely to take over Bank of Baroda, Indian Bank chief TM Bhasin would soon take charge of Bank of India.

Bhasin refused to comment on the issue, while Kaul could not be contacted.

In recent times, the finance ministry had gone slow on the traditional practice of allowing chiefs of mid-sized banks to move to bigger banks. However, with their movements, the age old practice has been reinstated now, sources said.

“Several lateral movements had been pending for sometime now but things have started moving now. It is important that executive directors get adequate experience in small and mid sized banks as chairmen before taking on the bigger banks,” a senior government official said.

The industry is facing several challenges, including a higher level of non performing assets (NPAs).

In a recent meeting with bank chiefs, finance minister P Chidambaram said that his immediate focus would be to kickstart the economy.

This means banks have to increase lending to key sectors while reducing NPAs.

He also asked banks to reduce interest rates, especially for consumer durables and automobiles.