Is there an issue with this Private Bank? Why CEO has resigned?

 

Several news outlets have reported that Srikrishnan Hari Hara Sarma, the managing director and chief executive officer of Karnataka Bank, has resigned. On Friday, he turned in his resignation. But why did he step down? Internal disagreements with the bank's board of directors over a financial matter seem to be the cause of his resignation.

According to sources, Srikrishnan H., the MD and CEO of Karnataka Bank, has resigned and will leave the company on June 30. According to reports, Executive Director Sekhar Rao would also step down by July 30.

Reports state that the problem stemmed from a May consulting fee of Rs.1.53 crore, or roughly 15.3 million rupees. The bank's board did not sanction this money, which was utilized for consulting and related services. Furthermore, it was stated that this sum exceeded the financial thresholds that the bank's senior directors, also known as whole-time directors, are permitted to spend without board consent.

The statutory auditors of the bank observed this expenditure and noted that:

• It was done without proper approval.
• The money may possibly need to be recovered from the directors who approved the payment.

An investor asked the bank about this matter on the most recent earnings call. CEO Sarma responded by acknowledging the problem but attempting to downplay how terrible it was.

Sarma added that there was a misinterpretation of the internal policy of the bank. The error resulted from that confusion. He went on to say that the policy has been updated and clarified, and that similar errors won't occur again.

With more than 40 years of expertise in the banking sector, Sarma is a highly skilled banker. In May 2023, he was appointed Karnataka Bank's first foreign (outsider) chief executive officer. Prior to his nomination, all of the bank's previous CEOs had been longtime staff members who advanced through the ranks, therefore this was a significant shift for the organization.

Following a rigorous selection process, he was appointed. This time, the bank did not select an internal candidate. The bank's board of directors selected Sarma after the experts evaluated several profiles and suggested names.

His Career Journey:

• Started at Bank of America – This is where he began his banking career.
• Was one of the early employees of HDFC Bank – a leading private bank in India.
• He was part of the founding team at Yes Bank, which means he helped start the bank from scratch.
• Before joining Karnataka Bank, he served as the Managing Director and CEO of Jio Payments Bank from April 2015 to November 2021.

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Yearly review meeting with the MDs and CEOs of PSU banks was led by Finance Minister. View the Highlights

 

A high-level annual performance assessment meeting with the CEOs and managing directors of all Public Sector Banks (PSBs) was presided over by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman. The meeting focused on key areas like Financial performance, Inclusive lending and financial inclusion,Cybersecurity, Customer service and innovation.

Strong Financial Performance of PSBs

• In FY 2024–25, Public Sector Banks recorded a record net profit of Rs.1.78 lakh crore.
• Net Non-Performing Assets (NNPAs) came down to 0.52%, a multi-year low. This shows better control over bad loans and improved financial health.
• The total business of PSBs (deposits + loans) increased from Rs.203 lakh crore in FY 2022–23 to Rs.251 lakh crore in FY 2024–25.
• Dividend payouts by PSBs increased from Rs.20,964 crore to Rs.34,990 crore over the same period.
• Banks are financially strong with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 16.15% as of March 2025.

Key Instructions and Directions by the Finance Minister

1. Financial Inclusion Campaign

• Starting July 1, 2025, PSBs must actively take part in a 3-month financial inclusion campaign.
• It will cover 2.7 lakh Gram Panchayats and Urban Local Bodies.
• Focus areas: KYC updates, re-KYC, and helping citizens claim unclaimed deposits.

2. Improving Deposit Mobilization

• Banks should increase efforts to mobilize more deposits to support rising demand for loans.
• They were told to conduct special drives, leverage branch networks, and reach out more in rural and semi-urban areas.

3. Support for Key Credit Schemes

Banks were instructed to scale up lending under the following schemes:

• PM MUDRA Yojana
• PM Vishwakarma
• PM Surya Ghar Muft Bijli Yojana
• PM Vidyalakshmi
• Kisan Credit Card (KCC)

4. Focus on Agriculture in Low-Productivity Districts

• Under the PM Dhan Dhanya Yojana, banks must identify 100 low-agriculture productivity districts.
• They should create special credit products for farmers in these areas to improve crop yields and local economies.

5. New Credit Assessment for MSMEs

• A new credit model for MSMEs was launched on March 6, 2025.
• So far, 1.97 lakh MSME loans have been sanctioned worth Rs.60,000 crore.
• Banks were told to implement this model more strongly to make credit easier for small businesses.

 Green & Renewable Energy Lending

• Lending to renewable energy projects is now a national priority.
• PSBs were encouraged to develop new credit models to support the Small Modular Nuclear Reactors (SMRs) as announced in the Budget 2025–26.

7. Boosting Corporate Lending

• Banks were asked to find new sectors with long-term growth potential and lend responsibly.
• Corporate lending should be increased with strong risk management practices.

8. Customer Service and Digital Innovation

• Banks must focus on:
  • Faster grievance redressal
  • Multilingual services (online and offline)
  • Easy-to-use digital platforms
  • Clean and customer-friendly physical branches
• Urban expansion should be scaled up to match rapid urbanisation.

Other Important Highlights

• GIFT City Presence: Banks should expand their operations in GIFT City (Gujarat) and take part in international platforms like the India International Bullion Exchange (IIBX).
• Stand Up India Scheme: 2.28 lakh loans sanctioned, worth Rs.51,192 crore.
• PM Vidya Lakshmi Scheme: 6,682 education loan applications sanctioned, amounting to Rs.1,751 crore.
• Vacancies in Banks: FM asked banks to quickly fill all staff vacancies to ensure better services.
• Banking Access in North-East: Banks were asked to open more branches in the North-East and strengthen the Business Correspondent (BC) network to provide banking in remote villages.

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DFS taken high-level review meeting with MD&CEO of Public Sector Banks

Top representatives from Public Sector Banks (PSBs), Private Sector Banks, and senior executives from important financial institutions attended a high-level review meeting today, which was led by Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS) within the Ministry of Finance.

Read More- Latest Updates about 5 Days Banking

Senior executives from SIDBI, Mudra Ltd., the Indian Banks' Association (IBA), and the National Credit Guarantee Trustee Company (NCGTC) participated virtually in the conference, which took place in New Delhi. Shri Nagaraju evaluated the state of several government-led financial inclusion programs at the conference. These comprised:

* Pradhan Mantri Jan Dhan Yojana (PMJDY): A flagship scheme for universal banking access.

* Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life insurance for the underprivileged.

* Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accidental insurance coverage.

* Atal Pension Yojana (APY): A pension scheme aimed at unorganized workers.

* Pradhan Mantri Mudra Yojana (PMMY): Financial support for micro and small enterprises.

* Stand Up India Scheme: Focused on empowering SC/ST entrepreneurs and women.

* PM Vishwakarma Scheme: Promoting traditional artisans and craftspeople.

Expanding Banking Infrastructure

The Secretary also reviewed the establishment of new brick-and-mortar bank branches in unbanked villages. He highlighted the importance of expanding banking services, particularly in remote and underserved areas, with a special focus on the North Eastern states. Shri Nagaraju urged banks to address challenges related to connectivity and infrastructure to ensure that banking services reach even the most isolated communities.

Strengthening Financial Inclusion

Shri Nagaraju commended the significant progress made under the government’s flagship schemes in expanding social security and promoting financial inclusion. However, he called on banks to intensify their efforts to bring more people under the umbrella of financial services.

The Secretary emphasized the importance of achieving targets under the MUDRA scheme and increasing loan disbursements to Scheduled Castes (SCs) and Scheduled Tribes (STs) under the Stand-Up India Scheme.

Shri Nagaraju reiterated the government’s commitment to deepening financial inclusion and urged both public and private sector banks to work collectively towards achieving these goals. He stressed that these efforts are vital for strengthening India’s financial ecosystem and ensuring inclusive economic growth.

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New MD & CEO appointed in Two Public Sector Banks

Two major public sector banks, Indian Bank and Punjab National Bank, have had their leadership changes authorized by the Appointments Committee of the Cabinet (ACC), the government said in two separate orders.Ashok Chandra, who is now Canara Bank's executive director, was named PNB's managing director and chief executive officer (MD & CEO) for a three-year term.

"The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for appointment of Shri Ashok Chandra (DoB: 16.12.1968), Executive Director (ED), Canara Bank as Managing Director and Chief Executive Officer (MD&CEO), Punjab National Bank (PNB), for a period of three years w.e.f. the date of assumption of charge of the office, or until further orders, whichever is earlier," the order said.

Read More - Top 10 Government Banks in India 2024

The new MD and CEO of Indian Bank is Binod Kumar, the Executive Director of PNB.After a performance assessment, Kumar, who was hired for a three-year tenure, may be eligible for a two-year extension.

After the Reserve Bank of India (RBI) allegedly made disparaging statements about the top executive, the Financial Services Institution Bureau (FSIB) revoked its previous recommendation, which was followed by his hiring.

"Appointment of Shri Binod Kumar (DoB: 01.01.1971), Executive Director, Punjab National Bank as Managing Director and Chief Executive Officer, Indian Bank for a period of three years w.e.f. the date of his assumption of charge of the post, or until further orders, whichever is earlier," stated the order.

The reports that the FSIB recommended Asheesh Pandey, executive director of Bank of Maharashtra, for the top job at Indian Bank in April 2024. The banking regulator then wrote to the finance ministry, requesting that it take its observations into account when assessing Pandey's candidacy.

According to the RBI, Asheesh Pandey's "behavior and conduct" during a supervisory findings exit meeting was "found not befitting his position and responsibilities concerning regulatory compliance."

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Check Salary of MD & CEO of SBI and other PSU Banks in 2024

Have you ever pondered the salary of the senior management of significant government banks? In 2024, a popular topic of discussion is the pay for executives, including as chief executive officers (CEOs) and managing directors (MDs), at large banks like Punjab National Bank (PNB) and State Bank of India (SBI). These numbers help us understand their roles and the status of the banking industry today. We'll break down the most recent wage data for these elite roles in this post, making it simple to grasp their income and the implications for the banking sector going forward. Let's examine the CEO and MD compensation of the largest public sector banks (PSU Banks).

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The combined take-home salaries of the heads of the 10 biggest state-owned banks was less than half the compensation paid to Axis Bank's top executive in 2023-24.

Sr. No.	Bank	Salary (Rs.)
1	State Bank of India	39,42,000
2	Punjab National Bank	39,31,488
3	Bank of Baroda	44,38,137
4	Canara Bank	42,23,971
5	Union Bank of India	40,00,000
6	Bank of India	33,70,597
7	Indian Bank	47,53,000
8	Central Bank of India	44,46,000
9	Indian Overseas Bank	40,80,132
10	UCO Bank	Not Declared
11	Bank of Maharashtra	74,00,000
12	Punjab & Sind Bank	Not Declared

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MD, CEO and Head of Banks in India (Updated)

We are sharing with you the List of Important Office Holders, Bank CEO and MD’s Name in India. It will help you in upcoming IBPS,SSC and other competitive exams.

Nationalised Banks

--> State Bank of India (SBI)–Shri Dinesh kumar Khara (Chairman)
--> Bank of Baroda (BoB)–Shri Debadatta Chand (MD & CEO)

--> Bank of India (BoI)–Shri Rajneesh Karnatak (MD & CEO)
--> Bank of Maharashtra (BoM)–Shri Nidhu Saxena (MD & CEO)
--> Canara Bank– Shri K Satyanarayana Raju (MD & CEO)
--> Central Bank of India–Shri Matam Venkata Rao (MD & CEO)
--> Indian Bank–Shri Shantilal Jain (MD & CEO)
--> India Post Payment Bank (IPPB)- Shri  R Viswesvaran (MD & CEO)
--> Indian Overseas Bank (IOB)–Shri Ajay Kumar Srivastava (MD & CEO)
--> Punjab and Sind Bank–Shri Swarup Kumar Saha (MD & CEO)
--> Punjab National Bank (PNB)–Shri Atul kumar Goel (MD & CEO)
--> UCO Bank–Shri Ashwani Kumar (MD & CEO)
--> Union Bank of India–Ms. A. Manimekhalai (MD & CEO)

Private Banks

-->  Axis Bank–Shri Amitabh Chaudhry (MD & CEO)
-->  AU Small Finance Bank –Shri Sanjay Agarwal (MD & CEO)
-->  Bandhan Bank–Shri Chandra Shekhar Ghosh (MD & CEO)
--> Catholic Syrian Bank–Shri Pralay Mondal (MD & CEO)
--> City Union Bank–Dr. N. Kamakodi (MD & CEO)
--> Development Credit Bank (DCB)–Shri Praveen Kutty (MD & CEO)

--> Dhanlaxmi Bank– Shri Ajith Kumar K.K. (MD & CEO)
--> Equitas Small Finance Bank - Shri Vasudevan P. N. (MD & CEO)
--> Federal Bank–Shri KVS Manian (MD & CEO)
--> HDFC Bank–Shri Sashidhar Jagdishan (MD & CEO)
--> ICICI Bank– Shri Sandeep Bakhshi (MD & CEO)
--> IDBI Bank Ltd–Shri Rakesh Sharma (MD & CEO)
--> IDFC First Bank–Shri V Vaidyanathan (MD & CEO)
--> IndusInd Bank–Shri Sumant Kathpalia (MD & CEO)
--> Jammu & Kashmir Bank–Shri Baldev Prakash (MD & CEO)
--> Karnataka Bank–Shri Srikrishnan Harihara Sarma (MD & CEO)
--> Karur Vysya Bank–Shri B Ramesh Babu (MD & CEO)
--> Kotak Mahindra Bank–Shri Ashok Vaswani (MD & CEO)
--> Lakshmi Vilas Bank–Shri Parthasarathi Mukherjee (MD & CEO)
--> Nainital Bank–Shri Nikhil Mohan (Chairman and CEO)
--> RBL Bank–Shri R Subramaniakumar (MD & CEO)
--> South Indian Bank–Shri P R Seshadri (MD & CEO)

--> Suryoday Small Finance Bank-- Shri R. Baskar Babu (MD & CEO)
--> Tamilnad Mercantile Bank– Shri Thiru K.V. Rama Moorthy (MD & CEO)
--> Ujjivan Small Finance Bank–Shri Sanjeev Nautiyal (MD & CEO)
--> Yes Bank –Shri Prashant Kumar (MD & CEO)

Last Updated on Jul,2024

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CBI files chargesheet against former CMD of PSU Bank

 The Central Bureau of Investigation (CBI) has filed a charge sheet against Alok Kumar Misra, the former chairman and managing director (CMD) of Bank of India (BOI) and Oriental Bank of Commerce (OBC), along with 33 other individuals and companies. This charge sheet is related to the alleged bank fraud committed by Dewan Housing Finance Ltd (DHFL), which is worth nearly ₹35,000 crore. The fraud was allegedly carried out by the Wadhawan brothers, Kapil and Dheeraj, who ran DHFL. The charge sheet also exonerates 49 other companies that were originally named as accused in the case.

According to the CBI, Alok Kumar Misra allegedly received a benefit of ₹1.5 crore from DHFL in the form of a discounted flat for his son in Mumbai. This benefit was allegedly given to him in exchange for sanctioning loans in his capacity as the head of BOI and OBC. Misra served as the CMD of BOI from 2009 to 2012 and OBC from 2007 to 2009.

The CBI’s investigation revealed that between January 2010 and December 2019, a consortium of 17 banks extended credit facilities worth ₹42,871 crore to DHFL. The Wadhawan brothers allegedly siphoned off the funds to shell companies known as ‘Bandra Book Entities,’ causing a loss of ₹34,926 crore to the consortium. 

The charge sheet also names other companies and individuals who helped the Wadhawan brothers divert funds.

It is important to note that the charge sheet against Alok Kumar Misra was filed after obtaining sanction under section 17A of the Prevention of Corruption Act, which is mandatory for investigating a public servant. However, a sanction under section 19 of the PC Act, which is mandatory for prosecuting a public servant, is still pending.

The charge sheet was taken cognizance of by a Delhi court on April 27.

During its investigation, the CBI found that out of the 131 companies originally named in the first information report (FIR) filed in June 2022, 49 companies were “genuine” borrowers without any bad intentions. These companies had entered into actual loan transactions with DHFL, following the necessary procedures and guidelines set by the Reserve Bank of India (RBI). 

The court has exonerated these companies from any criminal liability based on the CBI’s findings. The CBI has identified genuine loan transactions worth ₹13,425 crore, out of which ₹5,836 crore has already been repaid by these 49 companies to DHFL or the Resolution Professional.

The CBI has filed 2,70,000 pages of fresh documentary evidence in 20 trunks in the court, along with a list of 521 new witnesses to support its case against the accused.

It is worth mentioning that Alok Kumar Misra has held several high-level positions in the banking sector, including the chairman and managing director of Bank of India and Oriental Bank of Commerce.

The ownership of DHFL has changed since the bank fraud case came to light, as it was taken over and sold under India’s bankruptcy code.

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Police summons MDs of 4 Banks, 11 Bank Employees arrested

A number of bankers have been arrested in recent cyber fraud investigations due to allegations that they were involved in fraudulent operations. The managing directors of Yes Bank, ICICI Bank, RBL Bank, and Kotak Mahindra Bank are among the four private banks that the city police have written to, demonstrating how seriously they regard this issue. The letter's objective is to ask them to come in person the next week to provide an explanation for why no legal action should be taken against them.

Role of Bankers in Cyber Fraud Cases

When authorities discovered that the account holders implicated in illegal activities were unaware that they had opened such accounts, the role of bankers came under investigation. It was found that the bankers had helped cyber criminals open these accounts after more inquiry. The fact that the bankers charged a sizable commission in each instance suggests that they were aware that they were involved in illegal activity.

Victims of Fraudulent Investment and Task-based Schemes

Many people have been duped by schemes that promise large returns on investments or possibilities depending on tasks. In addition to apprehending the cyber criminals, the local police have shown initiative by making the bankers answerable for their involvement in these cyber fraud cases. As a result, the city police are the only law enforcement agency in the nation authorized to detain bankers in conjunction with other suspects in similar circumstances.

Read More - सबसे बड़ा बैंकिंग घोटाला: भारत देश में अब तक का सबसे बड़ा बैंक फ्रॉड, करोडो का बैंको को लगाया चुना

Exposing the Role of Bankers

During the investigation, it was discovered that the employees of Kotak Mahindra Bank’s MG Road branch were involved in fraudulent activities. They were subsequently arrested, and during the interrogation, they confessed to the involvement of several other bankers in similar fraudulent acts. Recognizing that bank accounts are a crucial component in cyber frauds, the police decided to investigate the criminal activities of bankers in such cases.

Violations of KYC Norms

In light of the recent arrests, the city police have written to the managing directors of Kotak Mahindra Bank, ICICI Bank, RBL Bank, and Yes Bank. The purpose of this letter is to request their personal appearance and an explanation as to why legal action should not be initiated against them for clear violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) norms.

Bankers’ Methods and Tactics

During the ongoing investigations, the police have found that the bankers accused of aiding cyber criminals opened bank accounts using identification and address proofs collected from factory workers and laborers. They even gained access to the bank accounts of daily-wage workers by offering them money. Additionally, the police noticed the use of fake IDs, address proofs, and forged signatures to open bank accounts, further exposing the deceptive tactics used by these individuals.

Read More - Suspicious transactions detected in this bank,three staffs arrested

Bank Responsibilities and Accountability

The Deputy Commissioner of Police(Cyber Crime), Siddhant Jain, emphasized that bank managements have a responsibility to safeguard their clients’ money and protect it from cyber criminals. If bank employees are involved in criminal activities and aiding fraudsters, it is the duty of the bank managements to explain why action should not be taken against them. The police are determined to hold the responsible parties accountable for their actions in order to protect the public and maintain the integrity of the banking system.

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