Bank of Baroda and Union Bank get new CEOs as global headwinds jostle banking sector

Despite competition from private players and the spectre of privatisation around 12 public sector banks account for 62 per cent of all deposits in India. With a global banking crisis, followed by concerns over the exposure of state-owned lenders to the Adani Group, PSBs have had a turbulent start ot the year.

Amidst these headwinds, Bank of Baroda and the Union Bank of India have welcomed new bosses, to navigate the sector amidst uncertain times.

Facing global headwinds

• The central government has announced that former executive director Debadatta Chand will now be the Managing Director and the Chief Executive Officer at Bank of Baroda.

• He will be elevated to the post from July once his predecessor Sanjiv Chadha's term, extended from January to June 2023, comes to an end.

• As for Union Bank of India, former executive director of the unit Rajneesh Karnatak will take over as the MD and CEO, for a period of three years.

PSBs in good health

• Both appointments have been made after recommendations from the Financial Services Institutions Bureau, an independent body that looks for top executives at state-owned banks.

• For Bank of Baroda the move comes in a time of healthy growth after it recently raised $4 billion via bonds, while Union Bank of India approved its own plans to raise capital.

• Amidst concerns during the Adani-Hindenburg fiasco, Bank of Baroda had clarified that its exposure to the conglomerate is only a quarter of the Reserve Bank of India's permissible limit.