Big Reshuffle expected in appointment of MD&CEOs of PSU Banks

A major reshuffle is expected in the appointment of MD&CEOs of public sector banks. Kalyan Kumar may take charge as the MD & CEO of Union Bank of India and Lalit Tyagi may be appointed as MD&CEO of Central Bank of India. As per sources, this reshuffle has been recommended by the Department of Financial Services (DFS).

This decision means that Asheesh Pandey, currently Executive Director at Bank of Maharashtra, has once again been dropped from consideration for a top post. He was recommended earlier by the Financial Services Institutions Bureau (FSIB), the body responsible for suggesting appointments for senior roles in public sector undertakings.

Back in May 2025, FSIB had recommended Pandey for the MD & CEO role at Union Bank of India, while suggesting Kalyan Kumar, then Executive Director at Punjab National Bank, for the Central Bank of India. Lalit Tyagi, who is currently an Executive Director at Bank of Baroda, was not initially in the picture for Central Bank.

Both Union Bank and Central Bank have been without a permanent head for the past few months. Union Bank’s former MD & CEO, A. Manimekhalai, completed her three-year term in June and did not seek an extension, while Central Bank’s M.V. Rao retired in July. A. Manimekhalai was involved in a big controversy. Union Bank purchased nearly two lakh copies of Book of at a cost of ₹7.25 crore. This book is of Shri K.V. Subramanian, the former Chief Economic Advisor (CEA) to the Government of India and former Executive Director (ED) at the International Monetary Fund (IMF). Recently he has also been removed from his service as ED (India) at IMF before completion of tenure. Sources say that due to this controversy, her tenure at Union Bank was not extended.

This is also not the first time Pandey’s candidature has been blocked. In April 2024, FSIB had recommended him for the top job at Indian Bank. However, the Reserve Bank of India (RBI) raised objections, citing issues with his conduct and behaviour. As a result, Binod Kumar was appointed MD & CEO of Indian Bank, and Pandey continued at Bank of Maharashtra.

At present, Central Bank’s board has not even appointed an interim head. Usually, the senior-most executive director is given the responsibility to run operations until a new chief is named.

More details will be released soon.

Also Read: 11 Candidates recommended for the post of ED in PSU Banks