Controversy erupts in appointment of MD & CEO of Indian Bank, RBI writes letter to Finance Ministry

In an unprecedented move, the Reserve Bank of India (RBI) has raised serious concerns regarding the behavior and conduct of Asheesh Pandey, an executive director at Bank of Maharashtra (BoM), who is currently being considered for the role of Managing Director and CEO at Indian Bank. The RBI has communicated its observations to the finance ministry, urging them to consider these remarks while evaluating Pandey’s suitability for the position.
The Candidature of Asheesh Pandey:
Asheesh Pandey, aged 54, has been shortlisted for the prestigious role of MD & CEO at Indian Bank. However, his appointment is contingent upon final approval from the Appointments Committee of the Cabinet (ACC), which consists of the Prime Minister and the Home Minister. The RBI’s communication in April highlighted concerns about Pandey’s conduct during an exit meeting held in September 2023 to discuss supervisory findings. The RBI deemed his behavior unfitting for his position and the responsibilities associated with regulatory compliance.

The Role of the RBI and the Department of Financial Services:
During the mentioned exit meeting, Asheesh Pandey’s conduct was also witnessed by AS Rajeev, the then MD and CEO of Bank of Maharashtra, who currently serves as the Vigilance Commissioner. The RBI subsequently conveyed its observations to the Department of Financial Services (DFS) in the same month. It is worth noting that the Financial Services Institution Bureau (FSIB), a government body responsible for selecting top management in public sector undertakings, had already recommended Pandey for the MD and CEO position at Indian Bank.
Government Response and Decision-Making Process:
The government has acknowledged the RBI’s communication and has responded to both the RBI and the Department of Personnel and Training (DoPT) on the matter. The final decision regarding Asheesh Pandey’s appointment will rest with the Appointments Committee of the Cabinet (ACC). It is a crucial step, as the ACC will consider the RBI’s concerns alongside other relevant factors before making a final determination.
Implications and Factors to Consider:
The RBI’s observations have prompted the DFS to suggest that the comments be taken into account while evaluating Pandey’s candidature for the post of MD & CEO in public sector banks for the vacancy in the year 2024-25. This recommendation emphasizes the need to ensure that candidates possess the necessary qualities and conduct themselves in a manner befitting their position, promoting regulatory compliance and fostering trust within the banking sector.
Conclusion:
The situation involving Asheesh Pandey’s candidature for the position of MD & CEO at Indian Bank highlights the importance of maintaining high standards of conduct and integrity in the banking industry. The RBI’s role in raising concerns and the subsequent evaluation by the government serve as crucial steps in ensuring that individuals entrusted with leadership positions in the banking sector uphold the principles of regulatory compliance and ethical conduct.
Those who humiliates the employees will be identified for higher posts in nowadays.
Though their background is remarkable with corruption etc will promoted and placed in a higher cadre.
Absolutely Right. Now-a-days bankers dreamed for higher position definitely should have some other qualities other than banking.
Yes, I concur with the views of Auditors and RBI. My working experience also speaks the same. He uses his position to influence decision for his judgement, without giving any value to others stand.
Now a days, banking is going in wrong direction. Bank is doing all things except banking. Illogical targets are given by ambitious person. Staffs are under severe pressure. They are killing themselves.
Absolutely concur with opinion expressed here . Executives without working as basic branch heads and who are having character of humiliating and harassing the employees are being selected. PMO is slightly watching this .
Fully agreed with the views expressed here. Banking is going all together in different direction. Only people with qualities of humiliating and harassing the staff ,is getting elevated to top posts. People sitting at top positions are at DFS are spoiling the banking. All bank employees are very much disgusted and disappointed. This will lead to collapse of system. PMO is not looking into selection of corrupted people who are spoiling entire banking in India.
Absolutely agree with views expressed here. Only inexperienced , who never worked as branch head are becoming top excutives . Another qualification is they should humiliate and harass the lower staff. This type of system completely ruine the banking in india. The locality of employees in banking to their organization has become dead and patriotic conduct to nation as well. What the he’ll going on in this country.
Higher executives are lions before their employees and insult and humiliate them and servile before their higher ups.
This govt promised to be a govt with a difference in 2014, but seems to be totally indifferent to such matters now.
Shame on them