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For the first time in its 90-year history, Andhra Bank is doing business without a Chairman and Managing Director for almost a quarter.
There has been inordinate delay in the appointment of a new head since the retirement of B. A. Prabhakar as CMD on August 31, 2013.
Interestingly, the lender has scaled down its 90th year celebrations scheduled for Saturday, as it doesn’t have a CMD.
The bank, established by freedom fighter B. Pattabhi Sitaramayya in 1923, had earlier planned a grand function. But now, it will be held on a simple note. “It will be entirely an internal event for us now,” said a senior official.
The uncertainty over the new chief took many turns for the last 10 months. In February, it was indicated by the Finance Ministry that M.S. Raghavan, the then executive director of Bank of India and now CMD of IDBI Bank, would head Andhra Bank. He was one of the eight executive directors identified to be the CMDs of public sector banks.
The Government later changed its mind and posted M.S. Raghavan as head of IDBI Bank .
It is now expected that C.V.R. Rajendran, Executive Director of Bank of Maharashtra, would be heading Andhra Bank and the delay in appointment is due to lack of clearance from the Vigilance which is mandatory.
Tough Time
Andhra Bank is passing through tough times with a dip in profit and mounting non-performing assets. In the second quarter ended September 30, its net profit fell 78 per cent to Rs 71 crore from Rs 326 crore a year ago. The net NPAs had gone up to 3.54 per cent from 2.16 per cent last year. The total business stood at Rs 2.30 lakh crore.
“Though we have two Executive Directors who can routinely conduct business, absence of CMD is delaying some key decisions such as recovery of loans from some big corporate customers who have defaulted,” said another senior Andhra Bank official.
naga.gunturi@thehindu.co.in
Source: thehindubusinessline
There has been inordinate delay in the appointment of a new head since the retirement of B. A. Prabhakar as CMD on August 31, 2013.
Interestingly, the lender has scaled down its 90th year celebrations scheduled for Saturday, as it doesn’t have a CMD.
The bank, established by freedom fighter B. Pattabhi Sitaramayya in 1923, had earlier planned a grand function. But now, it will be held on a simple note. “It will be entirely an internal event for us now,” said a senior official.
The uncertainty over the new chief took many turns for the last 10 months. In February, it was indicated by the Finance Ministry that M.S. Raghavan, the then executive director of Bank of India and now CMD of IDBI Bank, would head Andhra Bank. He was one of the eight executive directors identified to be the CMDs of public sector banks.
The Government later changed its mind and posted M.S. Raghavan as head of IDBI Bank .
It is now expected that C.V.R. Rajendran, Executive Director of Bank of Maharashtra, would be heading Andhra Bank and the delay in appointment is due to lack of clearance from the Vigilance which is mandatory.
Tough Time
Andhra Bank is passing through tough times with a dip in profit and mounting non-performing assets. In the second quarter ended September 30, its net profit fell 78 per cent to Rs 71 crore from Rs 326 crore a year ago. The net NPAs had gone up to 3.54 per cent from 2.16 per cent last year. The total business stood at Rs 2.30 lakh crore.
“Though we have two Executive Directors who can routinely conduct business, absence of CMD is delaying some key decisions such as recovery of loans from some big corporate customers who have defaulted,” said another senior Andhra Bank official.
naga.gunturi@thehindu.co.in
Source: thehindubusinessline
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