Government of India has unveiled a seven-pronged revamp plan named Indradhanush to shake up its struggling state run banks. The plan includes a capital infusion of Rs 20,000-crore and also hiring private sector executives for the first time to run public sector lenders. A new umbrella structure under the Bank Board Bureau will guide policy, functioning and appointments. The government has assured the lenders that they would be allowed to function without political interference.
The strategy, dubbed Indradhanush (rainbow), focuses on systemic changes in state-run lenders, including a fresh look at hiring, a comprehensive plan to de-stress bloated lenders, capital infusion, accountability incentives with higher rewards including stock options and cleaning up governance.
The government has announced a comprehensive Rs 70,000-crore capitalisation plan for four years till 2019, which includes an infusion of Rs 25,000 crore in the current financial year.
Indradhanush
- Appointments
- Bank of Board Bureau
- Capitalization
- De-Stressing Public Sector Banks
- Empowerment
- Framework of accountability
- Governance Reforms
The seven-member Bank Board Bureau, which will search for and appoint heads of state-run banks, and aid banks in capital-raising and developing business strategies, will be operational by 1 April 2016. The bureau will comprise a chairman and six members, of which three will be from the government. The remaining three will be professionals from banking and other sectors.
The government also announced appointments of CEOs for five state-run banks as well as non-executive chairmen of banks.
Name of the Person appointed as CEO |
Bank |
| PS Jayakumar | Bank of Baroda |
| Rakesh Sharma | Canara Bank |
| MO Rego | Bank of India |
| Kishore Kharat Piraji | IDBI Bank |
| Usha Ananthasunramanian | Punjab National Bank |
- G. Narayanan, a retired executive director of Indian Overseas Bank, will hold the post of non-executive Chairman at Vijaya Bank.
- T.C. Venkat Subramanian, a former Exim Bank chairman, has been selected for the post at Indian Bank.
Test Your Knowledge
What is Mission Indradhanush?
Mission Indradhanush was launched by Union Health Minister J.P Nadda on December 25, 2014.
It aims to immunize all children against seven vaccine preventable diseases namely diphtheria, whooping cough (Pertussis), tetanus, polio, tuberculosis, measles and hepatitis B by 2020
Indradhanush is also Air Exercise between Indian Air Force(IAF) and British Royal Air Forces (RAF).
