As per news reports, the Govt. had short-listed Punjab and Sind Bank chairman R.P. Singh and Allahabad Bank chairman K.R. Kamath to head Delhi-based Punjab National Bank (PNB). Mr.Kamath has been heading Allahabad Bank since August, while Mr.Singh, an Indian Administrative Officer from the Andhra Pradesh cadre, had been at Punjab and Sind Bank since March 2005.
The appointment of an IAS Officer in Punjab & Sind Bank (P&SB) could be understood in the light of the fact that P&SB continues to be a weaker bank
(even though Mr.RP Singh was at the held since 2005). Despite efforts, including appointment of an IAS Officer at the helm, the bank could NOT come out with IPO. RECENTLY, the Govt. has appointed Mr. GS Vedi as CMD of P&SB.
Should the Govt. be toying with the idea of appointment of an IAS Officer to head Punjab National Bank (PNB) - a big bank next to SBI - OR, should the Govt. appoint a more professional banker? In the recent past, the appointment of another IAS Officer - Mr. Damodaran - had not brought cheers to the present IDBI Bank (created after merger of the then IDBI Bank Ltd. with IDBI).
The Govt. should appoint career/professional bankers to head a large bank like PNB. If talent is not available within the PSU banking space, it can as well explore deputing a senior-level official from SBI (as had been done earlier when Mr. Varshney of SBI headed PNB). The Government should desist from the itch of appointing IAS officers in highly professional/technical spaces.
Government should let space of CMD for some Banking Professional instead of IAS, as they have chosen nandan Nilekani to UID, why they did not select any IAS to head for the UID Project?
The Government should leave this space of CMD of the PSU Banks for some Banking Professional instead of IAS, as they have chosen Nandan Nilekani to head UID Project, why they did not select any IAS to head for the UID Project???????????????
Because the Government knows that the IAS may make mess out it.
Varner, Let us hope that better sense prevail with the Government. One can recall as to how Mr. Damodaran (another IAS Officer) had merged the then IDBI Bank Ltd. which was going strong with the present IDBI Ltd. Had the then IDBI Bank Ltd. continued as it was earlier, it would be quoting at par with Axis Bank. AGAIN, Mr. Damodaran was said to be eyeing to take over the then UTI Bank Ltd.(renamed Axis Bank); but he could not succeed because of the stature of a person like Mr. PJ Nayak at the helm of UTI Bank Ltd..
YES, there are many able banking professionals in the field that there is no need for IAS Officers to graze on the banking turf.
Very well said. We have seen time and again IAS officers making a mess of tasks taken up by them, and we have seen incompetence, corruption and bias among IAS officers. They know its difficult to punish them if the screw up things or indulge in scams. Gone are the times when IAS (and related titles like IRS, IPS, IFS, etc) was held in high esteem. Sometimes we wonder how such persons got through IAS in the first place. We should not take IAS for granted as master of all trades but hire qualified and experienced people from the applicable skill area to lead efforts to achieve national goals. Babus will remain babus, and we are condemned to feed them no matter they perform or not, but we can for sure avoid them and look for capable hands when we need to get important things done. Nandan Nilekani is an excellent example of such practical and intelligent choice by the Govt. More such examples should follow...
I agree with your opinion that this beaurocracy os imposing these IAS officialsw should not be done with these so professionally managed PSU Banks at least.
PSU BANKS KO IIS GUNDARAJ SE BACHAO
I agree with your opinion that this beaurocracy of imposing these IAS officialsw should not be done with these so professionally managed PSU Banks at least....
Varner, As mentioned in my first post, any decision of Govt. of India in regard to the short-listing of candidates should give due consideration to the fact that
(1) Shri RP Singh, an IAS Officer was appointed since Punjab & Sind Bank was weak and needed perk up.
(2) Despite appopintment of IAS Officer and who was at the helm for nearly 4 years, the bank continues to be weak.
(3) Despite buoyant economy and vibrant stock market and IAS Officer at the helm, IPO could not be brought out to cash in the advantages prevalent then.
(4) Since he is an IAS Officer, even after his relinquishing the post of CMD of PSB, he is entitled for salary and perks as an IAS Officer (whereas incase of any banking professional, if he relinquishes the post, he is relieved and is not entitled for pay & allowances till he is appointed in another bank/institution).
The IAS cadre has no inkling of banking. The current practice of selecting well experienced and senior bankers to head public sector banks should be continued in the interest of the nanks, and all their stakeholders. Better sense should prevail in the Government and the tradition should be continued. The Chairmen and EDs of the PSU banks should be complimented for their leadership as they have steered Indian banks hrough the worst year in international banking. Today the banks are profitable, well capitalised and are at par with private and international banks in techonology and banking products. The Govt may end up killing the Golden Goose and end up with banks in the current state of Air India.
It looks like that the Congress High Command through its politicians, by inducing IAS as CMD in PSU Banks, want to have control over its reserves and use the funds and them the way Air India is today.
It looks like that the Congress High Command through its politicians, by inducing IAS as CMD in PSU Banks, want to have control over its reserves and use the funds and them the way Air India is today.
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