Mumbai: Facing a historic level of bad loans, the new State Bank chairman Rajnish Kumar has created a special division headed by an MD to tackle the issue as part of his restructuring of the top and mid-level management to better run the nation's largest lender.
Kumar, who assumed office as the 25th chairman of SBI last Saturday for a three-year tenor, has reshuffled various business verticals headed by whole-time directors.
"It has been decided by the competent authority to restructure the top organizational set-up of the bank for effective control and oversight of the enlarged domestic business and operations, post-mergers of associate banks, better synergy and also to impart greater impetus to recovery of NPAs and resolution of stressed assets," Kumar said in an internal communication on October 7.
To have a special focus on the mountain of non performing assets (NPAs), which has hit double digits in Q1, Kumar has created a new division under the label of Stressed Assets Resolution Group headed by a managing director. He has not named the new person as yet.
In the three months to June, SBI's gross NPAs rose to 9.97 percent from 7.40 percent and net NPAs jumped to 5.97 percent from 4.36 percent. Retail NPAs grew 1.56 percent to Rs 7,632 crore, while bad loans in the agri book grew 9.51 percent to Rs 17,988 crore.
The key reshuffle includes re-designation of B. Sriram, who was earlier heading the corporate banking group, as MD (corporate and global banking). Till the time new MD for SARG is appointed, Sriram will be looking after the stressed assets resolution group department as well.
The post of deputy managing director (stressed asset management group) has been rechristened as deputy managing director (stressed assets resolution group) who will be reporting to the MD of this division.
All DMDs from corporate accounts group, mid corporate group, international banking group and global markets will will be reporting to Sriram for the time being.
Kumar has retained Anshula Kant as CFO and DMD. Managing director for national banking group, which Kumar was handling prior to his elevation, has been re-designated as managing director, retail and digital banking under PK Gupta as an MD. Earlier he was MD, compliance and risks.
The post of MD, compliance and risks, is re-designated as MD (risk, IT and subsidiaries), which will be now handled by Dinesh Kumar Khara. Khara was earlier MD (associate and subsidiaries).
The bank has also decided to create as new chief general manager designated as CGM and chief strategy officer under the chairman for monitoring various corporate strategic initiatives.