Slamming the government’s move to make PRB an independent regulator, the RBI said, “The composition of the PRB is also not in conformity with the announcements made in the Finance Bill by the Finance Minister.”
The board decided to appoint Sandeep Bakshi as Managing Director & Chief Executive Officer. His appointment will be for a period of five years until October 3, 2023, subject to regulatory and other approvals.
Before the story of Chanda’s conflict of interest and quid pro quo broke, pressure had also started building with the divergence in its numbers following the asset quality review by the RBI and build up of bad loans.
On Monday, the government said there is deep-rooted mismatch in the debt-equity ratio because of excessive leveraging which has put a question mark on its ability to continue in the hands of the present management.
When contacted, the top official of a financial institution said: “We have escaped (from bailing out IL&FS) for the time being. It was a good decision by the government to reconstitute the IL&FS board.”
The promoters and shareholders are expected to reveal their funding plan by September 29. IL&FS has indicated that it was open to the idea of bringing in a strategic investor to put the group back on track.
Vijaya Bank posted a 43.3 per cent decline in net profit at Rs 144.34 crore for June quarter even though NPA ratio improved. In absolute terms, gross NPAs however rose to Rs 7,579.11 crore as on June 30, 2018 against Rs 6,812.21 crore a year ago.