The government swapped the top posts of IDBI Bank Ltd and Indian Bank. IDBI Bank is a much larger bank than Indian Bank, but it’s sick. Indian Bank is roughly half the size of IDBI Bank in terms of assets but in the first three quarters of fiscal year 2017 it recorded a net profit of Rs1,086 crore against a Rs1,958 crore loss by IDBI Bank. It is better capitalised (13.89% capital adequacy ratio) than IDBI Bank (11.29%) and has far less bad assets (4.76% net bad loans and 7.69% gross bad loans) than IDBI Bank (9.61% and 15.16%, respectively). Jayakumar was picked for Bank of Baroda; Sharma for Canara Bank; Melwyn Rego, deputy managing director of IDBI Bank, for Bank of India; Usha Ananthasubramanian, chairman and MD of Bharatiya Mahila Bank (this has been merged with SBI) for Punjab National Bank; and Kharat, an executive director of Union Bank of India, for IDBI Bank.

Source: Mint April 09, 2017 21:33 UTC