Rajnish Kumar to replace Arundhati Bhattacharya as next SBI chairman
Press Trust of India (PTI) reported on Wednesday 4/10/2017 that Rajnish Kumar
has been appointed as the next chairman of State Bank of India.
The Appointments Committee of the Cabinet has approved the appointment of Rajnish Kumar
for a period of three years from October 7,according to an order issued by the Department
of Personnel and Training (DoPT)
Rajnish Kumar has also worked as Chief General Manager, Project Finance and Leasing Strategic Business Unit.
Prior to this appointment, he was Managing Director – Compliance and Risk, and Managing Director and
Chief Executive Officer of SBI Capital Markets Limited, the merchant banking arm of SBI,PTI reported.
Arundhati Bhattacharya’s four-year term, which will end on October 6
- Arundhati Bhattacharya was also focused on making the banking more relevant to the changing business environment,
- customer needs making the bank digitally and making the organisation employee-friendly,especially for women.
- she also did bank’s margins and asset quality came under pressure as the demand for loans reduced significantly.
- With rising provisions for bad loans.
- The merger of five associate banks
- Developed good working relationship both with the RBI and the finance ministry
- Equity capital of Rs 15,000 crore through a qualified institutional placement route,the first such fund-raising after the merger, at Rs 287.25 per share.
- Brought down gross non-performing assets (NPAs) as a percentage of total advances from 5.6 per cent in September 2013 quarter to 4.2 per cent
- The June 2017 quarter showed the impact of poor asset quality in associate banks as gross NPAs touched 10 per cent.
- The bank’s financials improved in Bhattacharya’s two years with the net profit rising from Rs 2,375 crore in the September 2013 quarter to Rs 3.879 crore in the September 2015 quarter.
- The SBI’s net interest margins, which were in the range of 3-3.2 per cent fell to 2.8 per cent between June 2016 and March 2017, and fell further to 2.4 per cent in the June 2017 quarter after the merger with associate banks digital
- The bank’s digital offerings both increased and improved as it quickly launched products from e-wallet SBI Buddy to digital branches, and mobile website and apps for all types of customers.