Government May Extend Term Of Bank of Baroda Chief PS Jayakumar
The government may give an extension to Bank of Baroda Managing Director and CEO PS Jayakumar based on the assessment of his three-year performance, according to people with knowledge of the matter.
Jayakumar was one of the two selected from the private sector and joined the state-owned bank in October 2015. He was appointed for a three-year term that will come to an end on October 12, 2018.
People in the know said the government will take a final call on his extension after an objective assessment of his performance.
During Jayakumar’s stint of 11 quarters, the bank posted a loss of Rs 9,674.4 crore but earned a profit of Rs 2,581.5 crore.
On a net basis, the bank posted net loss of Rs 7,092.9 crore during his stint.
Soon after he assumed charge, Bank of Baroda made a loss of Rs 3,342 crore in the October-December period of 2015-16. In the subsequent quarter, too, the lender posted a loss of Rs 3,230.1 crore.
However, the situation got better from the first quarter of 2016-17 when the bank earned a profit of Rs 423.6 crore going further up in the second quarter to Rs 552.1 crore. It declined to Rs 252.6 crore in the third quarter and in the last quarter, it was Rs 154.7 crore.
The bank again posted a hefty loss of Rs 3,102.3 crore in the fourth quarter (January-March) 2017-18. However, the bank earned a profit of Rs 528.2 crore in the first quarter of the current fiscal, as per data available on the BSE.
Jayakumar’s assignment also assumes significance as the government introduced a significant policy change allowing private sector professionals to head public sector banks.
In mid-August 2015, the government had roped in private sector professionals to run two of its largest banks—Bank of Baroda and Canara Bank. The government named Rakesh Sharma of Lakshmi Vilas Bank the new Managing Director and Chief Executive Officer of Canara Bank.