Reported by: banking|Updated: March 21, 2017
The government announced that CEOs of Indian Bank and IDBI Bank would swap their position from the beginning of the financial year. Accordingly, M.K. Jain, MD and CEO of Indian Bank, will assume charge at IDBI Bank and Kishor Kharat, MD and CEO, IDBI Bank will move to Indian Bank. The government decision comes in the wake of mounting bad loans at IDBI Bank, which has not been able to effectively tackle it. However, Indian Bank has become a highly profitable bank and has cut down its bad debts substantially. Jain is seen as a driving force behind the bank’s resurgence and the government believes he would be able to replicate the performance at IDBI Bank. Indian Bank had reported a 7-fold rise in net profit to Rs 373 crore in the third quarter ending December, while in the same period IDBI Bank posted a record loss of Rs 2255 crore.