Mumbai: The government on Thursday extended by one year the tenure of Bank of Baroda managing director and chief executive officer P.S. Jayakumar. His term was to end on 12 October 2018.

“The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for extending the term of office of P.S. Jayakumar as managing director and chief executive officer, Bank of Baroda, for a further period of one year beyond his currently notified period of appointment of three years that expires on 12 October 2018 till 12 October 2019, or until further orders, whichever is earlier," said a government notification.

This extension comes at a time when Bank of Baroda, Dena Bank and Vijaya Bank are set to merge into a single entity. On 10 September, the government had proposed the merger of the three state-owned banks. The merged entity, comprising two relatively stronger banks and a weak one, will be the third-largest lender in India after State Bank of India and HDFC Bank Ltd, with total business of 14.82 trillion.

Mint had on 22 August reported that the government is likely to extend Jayakumar’s tenure. He joined the bank on 13 October 2015 as one of the two private sector professionals picked by the government to head a public sector bank. Before joining Bank of Baroda, Jayakumar founded VBHC Value Homes Pvt. Ltd along with Jaithirth Rao.

A career banker, Jayakumar spent 23 years with Citigroup Inc. in India and Singapore in different capacities. During his stint at Bank of Baroda, Jayakumar introduced several changes, including redrawing the roadmap for its retail business, upgrading its technology infrastructure, unwinding of unprofitable foreign operations and cleaning up of the bank’s balance sheet.

The lender had reported over a two-fold increase in its quarterly profit to 528 crore in the June quarter of FY19, compared to 203 crore posted in the year ago period due to the fall in provisions.

The profit was mainly driven by the bank’s healthy net interest income. Bank of Baroda gross non-performing assets (NPAs) stood at 12.46% in the first quarter compared to 11.40% in the three months ended June 2017.

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