New Delhi: The Finance Ministry has shortlisted two senior officials of State Bank of India (SBI) for the post of managing director of the country's largest bank, according to sources.
B Sriram, managing director of State Bank of Bikaner and Jaipur (SBBJ), and V G Kannan, managing director of SBI Capital Markets Ltd, are contenders for the post of two managing directors of the SBI, they said.
Names of shortlisted candidates have been sent to the Finance Minister for his approval, the sources said, adding that the final call on the appointment will be taken by the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister Narendra Modi.
Vacancy for two managing directors was created after retirement of Hemant Contractor and S Viswanathan on April 30, 2014.
Besides SBI Chairperson Arundhati Bhattacharya, the other two serving managing directors are A Krishna Kumar and P Pradeep Kumar.
As per the State Bank of India Act 1955, not more than four managing directors may be appointed by the government in consultation with the Reserve Bank of India (RBI).
Senior most managing director Krishna Kumar will retire in November this year, while Pradeep Kumar will serve the bank till October next year.
Meanwhile, SBI reported an 8 per cent decline in net profit at Rs. 3,041 crore for the fourth quarter that ended on March 31, 2014, on account of higher provisioning against bad loans.
The lender had a net profit of Rs. 3,299 crore on standalone basis in the January-March quarter of the previous fiscal year.
SBI's total income rose to Rs. 42,443 crore in the fourth quarter of fiscal year 2013-14 from Rs. 36,331 crore in the corresponding period a year ago.
Provisions against bad loans increased significantly in Q4 to Rs. 5,884 crore from Rs. 3,974 crore in the year-ago period.
Gross non-performing assets (NPAs) as a percentage of total loan rose to 4.95 per cent during the quarter, from 4.75 per cent in the year ago period.
Net NPAs also increased to 2.57 per cent as compared to 2.10 per cent in the March 31, 2013.
