Soma Sankara Prasad likely to be next UCO Bank MD

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The government is considering hiring Soma Sankara Prasad, the deputy managing director of the State Bank of India, as the managing director of the UCO Bank in Kolkata.

The Banks Board Bureau (BBB) has recommended Atul Kumar Goel, Managing Director of UCO Bank, to lead Punjab National Bank as MD. After S S Mallikarjuna Rao’s retirement in January, the managing director job at PNB will become vacant.

According to reports, Prasad has been suggested to lead UCO Bank, subject to numerous clearances, including vigilance, because he was on the reserve list when the interview for appointment as managing director of Indian Bank took place earlier this year.

The Appointments Committee of the Cabinet (ACC), which is chaired by the Prime Minister, will make the final decision in this matter.

Interviews for the position of MD of Indian Bank were conducted by the BBB, a headhunter for state-owned banks and financial organisations, in May. Shanti Lal Jain was recommended for the position after the interview, while Prasad was on the reserve list.

Following improvements in numerous metrics and a formal assurance that the state-owned institution will comply with the minimum capital norms, the Reserve Bank removed UCO Bank from its Prompt Corrective Action (PCA) Framework last month.

The lender also informed the RBI of the structural and systemic reforms it has implemented, which will aid the bank in meeting its financial obligations. In May 2017, the public sector bank was bailed out by PCA.

When banks fail to meet certain regulatory standards, such as return on assets, minimum capital, and the amount of non-performing assets, PCA is triggered.

The constraints make it difficult for banks to lend freely in a variety of ways, forcing them to operate in a constrained environment that stifles growth.

UCO Bank’s net profit more than quadrupled to Rs 101.81 crore in the first quarter of the fiscal year ended June 30, as bad loans decreased.