Mumbai: Pratip Chaudhuri, deputy managing director (International Banking Group) SBI, on Thursday took over as the new chairman of State Bank of India, country’s biggest lender.
“Pratip Chaudhuri assumed charge as chairman of State Bank of India on 07 April, 2011,” the bank said in a late night statement.
Chaudhuri, who joined SBI as a probationary officer in 1974, succeeds O P Bhatt who retired last month. He has been appointed for a period of nearly two-and-a-half years. His tenure will come to an end in September 2013.
One of the biggest challenges he faces is on the special loan rates front or teaser rates. The industry would be keenly watching Chaudhuri’s moves on teaser rates as with this novel home loan product, SBI had gained critical edge on mortgage sector.
Under his predecessor, SBI has been continuing its teaser rates despite the Reserve Bank publicly expressing its dislike for it. The regulator had also raised the provision requirements for such loans.
Another major challenge facing Chaudhuri is merger of associate banks with parent SBI.
Experts said the the experience of Chaudhuri, who as the head of State Bank of Saurashtra piloted its merger with SBI, will be crucial in amalgamation of five of its associate banks.
Chaudhuri takes over at a time when the bank’s profit has peaked to Rs 11,034 crore (as on March 2010).