Bad Debt Clean-Up Will Remain Priority, Says Next SBI Chief
Rajnish Kumar to take charge from October 7.
The resolution of distressed assets will continue to be the biggest agenda for State Bank of India, Chairman Designate Rajnish Kumar told BloombergQuint.
The government today named Kumar as new chairman of India’s largest bank, State Bank of India, succeeding Arundhati Bhattacharya whose term ends on Friday. The Appointments Committee of the Cabinet has approved his appointment for a period of three years from October 7, according to an order issued by the Department of Personnel and Training. Kumar is currently SBI’s managing director.
Adjusting to his new role at the helm of India’s largest bank will “not be a big deal”, Kumar said, while outlining his agenda.
NPA management has been one of the biggest agendas being pursued by Mrs Bhattacharya. We will continue that agenda. The bank is already in the midst of a digital transformation, which in itself is a big change. The market is also very competitive and we will have to be on our toes in this matter.Rajnish Kumar, Chairman Designate, SBI
“He (Rajnish Kumar) has worked with me in the past. He is very well suited for the job. He will do very well,” former SBI Chairman Pratip Chaudhuri who headed the bank between 2011 and 2013, told BloombergQuint over the phone.
OP Bhatt, who held the reins of the lender before Chaudhuri, said Kumar’s previous experience in the corporate banking and international banking divisions of SBI will come in handy. “As the head of the national banking group he has really conducted himself very well,” Bhatt added.
The national banking group is the identity of the bank among people at large and Kumar’s work there is exemplary. His recent work during the Jan Dhan account opening and demonetisation really proved that he is very capable as the head of the national banking group. I truly believe that he will take the bank to new highs.OP Bhatt, Former Chairman, SBI
SBI’s Outgoing Chief
Kumar’s predecessor is the first woman chairman of the 200 year old state-owned bank. Bhattacharya is known for her stern policies regarding bad loan management. SBI has often taken the lead in applying various stress resolution schemes introduced by the Reserve Bank of India and pushed for insolvency proceedings against most of the 12 large corporate accounts which the regulator flagged off in June 2017.
Bhattacharya also spearheaded the successful merger of five associate banks and Bharatiya Mahila Bank with SBI, an issue remained on the backburner under previous SBI chairmen.
With Bhattacharya at the helm, the bank was also able to list its life insurance venture recently, the first among public banks in India. The bank also initiated many digital banking initiatives and became a leader in the mobile banking transactions under her leadership.