RBI, Cabinet Secy scrutinising appointments of PSB chiefs

Written By Unknown on Jumat, 15 Agustus 2014 | 23.25

The CBI had recently written to the Finance Ministry alleging "irregularities" in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.

Close on the heels of  Syndicate Bank Chairman's arrest for alleged graft, Finance Minister Arun Jaitley today said government will deal with PSU lenders sternly and is scrutinising recent appointments of bank heads.

"Time has come to be strict with PSU banks. I have urged the Cabinet Secretary and the RBI Governor to examine recent appointments in public sector banks," he told reporters here.

The CBI had recently written to the Finance Ministry alleging "irregularities" in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.

Syndicate Bank Chairman and Managing Director (CMD) S K Jain was arrested earlier this month for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of a company.

A panel headed by RBI Governor selects PSU bank chiefs. Applications are processed by the Cabinet Secretary and placed before the Appointments Committee of Cabinet (ACC) for its final approval.

State-run banks in which CMDs were appointed recently include Canara Bank , Corporation Bank , Bank of India , IDBI Bank ,  Allahabad Bank and Central Bank of India .

Canara Bank stock price

On August 14, 2014, Canara Bank closed at Rs 374.75, up Rs 9.55, or 2.62 percent. The 52-week high of the share was Rs 498.00 and the 52-week low was Rs 189.90.


The company's trailing 12-month (TTM) EPS was at Rs 53.18 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 7.05. The latest book value of the company is Rs 642.16 per share. At current value, the price-to-book value of the company is 0.58.


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