After the recent retirement of ex-deputy governor S.S. Mundra last year, the government recently filled up the empty post with the name Mahesh Kumar Jain. The current and fourth Deputy Governor of RBI (Reserve Bank of India) is also the MD and CEO of the IDBI Bank. Following the successful track record seen during the career of Mr. Jain as an executive director of the Indian Bank and CEO of the same resulted in an immediate swap with the boss of IDBI Bank named Kishor Piraji Kharat.
Currently, the former CEO has joined RBI for tenure of 3 years for the post of Deputy Governor. The RBI houses 4 posts for the profile of deputy governor. From these 4, two are selected from inside the RBI. The other two comprise of an economist and another commercial banker. Apart from Mahesh Kumar Jain, the posts for deputy governors are held by Viral Acharya, N.S. Vishwanathan, and B.P. Kanungo. For the last 3 fiscal years, IDBI Bank has been facing the wrath of a lot of bad loans along with a huge amount of loss. To resolve this issue, RBI initiated the PCA or Prompt Corrective Action to ensure that the bank gets back to its original stature by enabling restriction over branch expansion and corporate lending.
Jain also established another strategy for betterment of the bank that included identification of areas that can use some cost reduction along with revenue maximization. During the term of Jain’s tenure, the bank had to sell the stake at SIDBI (Small Industries Development Bank of India), NSDL e-Governance Infrastructure, and CCIL (Clearing Corporation of India). This was all to favor the better accumulation of capital for the bank.
Before working for the RBI, Jain also served as a board member at Exim Bank along with the NIBM (National Institute of Bank Management). Holding about 30+ years of experience in banking sector, Jain is most likely to handle the key departments that include banking supervision, supervision of cooperative banks, and supervision of non-banking sectors.
Following Mundra’s retirement, the government t conducted 2 interview rounds to select the new eligible post holder as deputy governor. Other names shortlisted for the position included SBI’s managing directors P.K. Gupta and B.Shriram, Charan Singh Executive Director from UCO Bank, K.P. Krishnan from Secretary at Skill Development and Entrepreneurship Department, T.V. Somnathan Principal Secretary Tamil Nadu, and Yaduvendra Mathura additional secretary at NITI Aayog.