Soma Shankara Prasad is new MD & CEO of UCO Bank

At present, there is a case going on in the Delhi High Court which in one of its verdicts has already disallowed the jurisdiction of the BBB over making any selections of directors for the public sector insurers

Mumbai: Soma Shankara Prasad has been appointed as new MD & CEO of UCO Bank, Kolkata-based public-sector lender. Prasad is currently working as Global Compliance Officer at the country's largest lender State Bank of India (SBI) in his capacity as deputy managing director of the bank. His name for the UCO Bank MD & CEO post was cleared by Appointments Committee of the Cabinet (ACC).

Talking to Bizz Buzz, Prasad said that he will be assuming his new office on January 1, 2022. Atul Kumar Goel, the current MD & CEO of UCO Bank, has been appointed as the officer on special duty at Punjab National Bank until January-end. After that, on superannuation of the current MD & CEO of PNB, Ch SS Mallikarjun Rao, Goel will be assuming as the MD & CEO of PNB for around three years, the ACC notification said.

In the meanwhile, the ACC has cleared three names for appointment as part-time members of Bank Board Bureau (BBB) from the insurance sector. BBB is an autonomous head-hunting agency to select and recommend the names for top posts in the PSU banking and insurance industries.

The new members include Usha Sangwan, former MD, Life Insurance Corporation representing the life segment, AV Girija Kumar, former CMD, Oriental Insurance Company (OIC), for non-life, Sujay Banarji, former member, (Distribution), for re-insurance or actuarial science.

"The appointments committee of the Cabinet (ACC) has approved the proposal for appointment of three part-time, non-governmental members of the BBB for the purpose of selection and appointment of directors on the boards of public sector insurance companies, for a term of two years," said a communication from Department of Personnel and Training.

At present, there is a case going on in the Delhi High Court which in one of its verdict has already disallowed the jurisdiction of the BBB over making any selections of directors for the public sector insurers.

It is not immediately known whether government has taken into account the judgement of Delhi HC while inducting three new part-time members into BBB as the initiative to add insurance members in the BBB had started much earlier, said industry sources.

The Delhi HC had given such a verdict in case of Ravi vs Union of India and Others had said BBB can only make select candidates for the banking industry and not for the PSU insurance industry.

After that, Inderjeet Singh, general manager, New India Assurance(NIA), has also filed a case in Delhi HC pleading that the government hasn't appointed him as the CMD of Chennai based United India Insurance though he was selected by the BBB and has challenged appointment of Satyajit Tripathy, for the same post, despite the fact that he was the reserved candidate for the post.

Justice V Kameswar Rao J of Delhi High Court, while admitting Singh's case had reminded him about his earlier judgement which had disqualified BBB's from selecting directors in the public sector general insurance companies as it was constituted to select the top officials the PSU banking industry.

After being pointed by the Delhi HC about its previous judgement disqualifying BBB from making any director level appointments in the PSU insurance industry, Singh, though, had withdrawn his plea to become the CMD of UII, has challenged Tripathy's appointment as CMD of UII.

The Delhi HC has already sought responses from government of India and Tripathy on Singh's plea which will be now heard on Feb 3. The government on Dec 17th hearing had informed the court that all the directors (except Tripathy) who were appointed by the government on the basis of selection by the BBB have been reverted back to their earlier position of general manger.

It is yet to be known after implementing court order in the matter of directors of PSU general insurers, what stand the government will take on BBB before Delhi HC which has a bearing not only on Tripathy's appointment but also on some other appointments including a few CMDs of PSU general insurance companies and GIC Re, managing directors, and chairman of Life Insurance Corporation.

Also, it is yet to be known whether in view of Delhi HC earlier verdict, BBB can continue its function to conduct interviews and select candidates for a few forthcoming vacancies in PSU insurance sector space including chairman and one post of MDs in LIC and CMD of NIA.