IDBI Bank's MK Jain appointed as RBI Deputy Governor for 3 years

MK Jain, the MD & CEO of IDBI Bank, was on Monday appointed as the Deputy Governor of the Reserve Bank of India (RBI). The seat was filled after former Deputy Governor SS Mundra ended his three-year term in July 2017. Jain, an MBA, FRM (financial risk management) and post-graduate commerce, has been the MD and CEO of IDBI Bank since March 2017. Prior to that, he was at the helm of Indian Bank.

Jain was elevated to the post of MD and CEO of Indian Bank in November 2015. During his stint, Jain effected a turnaround and created a strong institutional set-up to implement HR reforms and digitisation. Jain's success at Indian Bank catapulted the highly regarded but little-known executive into the limelight, turning him into a much-sought-after CEO in public sector banking space. So, it is not surprising that he currently holds an equally challenging role at IDBI Bank. He has also been named the Best CEO in the PSU (BFSI) category in the Business Today Best CEO Study 2017.

As MD and CEO of Indian Bank, Jain focussed on creating a strong foundation to kick-start its lending activity. His priority was to improve the bottom line as the bank was facing profitability pressure due to a high-cost structure, lower other income and deteriorating asset quality. He did succeed in improving performance. Plus, there were other achievements. Customers still remember how the bank tested its business continuity plan at the time of Chennai floods in 2015. Armed with laptops, the bank employees offered doorstep services and even managed to bring a micro-ATM on a boat.

A postgraduate in Commerce, Jain started his career with Delhi-based Punjab National Bank (PNB) in the mid-1980s and specialised in credit, covering the markets in Haryana, Chandigarh and Himachal Pradesh. In December 1999, he was part of a four-member team that developed a risk management architecture for the bank in association with the Boston Consulting Group. In addition, he completed his MBA, did a course on financial risk management and trained as a chartered financial analyst to hone his credit analysis skills.

Jain's next move to Syndicate Bank as an assistant general manager (credit) required shifting base from North to South. He worked in the risk management department during 2005-2011, but got a plum position in January 2012 when he was appointed the zonal head of Mumbai. In a year and a half, he was able to ensure 20-25 per cent year-on-year growth across key areas, including retail and corporate credit, operating profits and cost of deposits. At IDBI Bank, Jain created a dedicated vertical to monitor non-performing assets and slippages as well as recovery. 

A search panel headed by the Cabinet Secretary, including the RBI Governor, had interviewed candidates, including three senior bureaucrats, on May 10. As per the RBI Act, the central bank should have four deputy governors -- two from within the ranks and one commercial banker and an economist to head the monetary policy department.

Other serving Deputy Governors are Viral V Acharya, NS Vishwanathan and BP Kanungo. Although interviews were conducted on July 29 last year, the government decided to start the process all over again in January this year. The deputy governor will draw a fixed salary of Rs 2.25 lakh per month plus allowances, it had said.

With over three decades of experience in the field, Jain has also served at various bank boards of Exim Bank, NIMB, and IBPS. Besides this, he also served on several banking sector committee, including secretary and coordinator to the Basant Seth Committee on Review and Revamp of Internal and Concurrent Audit System in Public Sector Banks (PSBs); member of the government-constituted committee on PIL on NPAs for submission to the Supreme Court; and redesigning the annual performance appraisal reports of PSB officers.

With PTI inputs