SBI transfers 70 execs, move seen as an attempt by new chief to stamp her authority--ET 24th October 2013
NEW DELHI: State Bank of India’s new chairperson Arundhati Bhattacharya has transferred around 70 top executives, a rejig that insiders see as an attempt by the new head to stamp her authority and reorient the team. Change of portfolios and transfer orders have been issued for six deputy managing directors, 16 chief general managers and 46 general managers.
SBIBSE 2.35 % executives expect more transfers as Bhattacharya gets her core team ready for the next three years. Bhattacharya was appointed chairperson of the country’s biggest bank earlier this month. SBI insiders say this is one of the biggest reallocation in recent times, which should also be viewed in light of promotions ordered in August and September.
“When a new incumbent lands at the top office, a rejig is mostly on the cards. Some of it is performance based while the other depends upon the understanding of the chairman. Every head likes to set up a core team with which they share both loyalties and better understanding,” a senior SBI executive said, requesting anonymity. Another top SBI executive said every chairman comes with a different vision and tries to stamp his or her authority.
“What Chaudhuri did after his appointment was widely discussed in media, but this is almost customary,” he said, citing the change in provisioning rules after the last chairman assumed office. In May 2011, a month after Pratip Chaudhuri had joined as chairman of SBI, replacing OP Bhatt, the bank had reported a 99% slump in net profit at .`20.88 crore for the quarter to March.
“This was the lowest quarterly profit for SBI in 12 years and that was because Chaudhuri decided to increase the provision by 80% mostly for bad loans and employee pension,” the above quoted executive said, adding that Chaudhuri also discontinued the bank’s teaser loan scheme, which some considered the game changer in SBI’s retail loans history.
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