Ranjana Kumar on Friday assumed charge as chairperson of the National Bank for Agriculture and Rural Development. Prior to this appointment, she was the chairperson and managing director of Indian Bank.
Kumar will have a tenor of about two years at Nabard. She has taken charge of Nabard at a time when the institution is at crossroads as liquidity flush banks aren't resorting to refinance from it. This has forced the institution to get into direct lending via co-financing with various banks.
Further, the bank faces the challenge of streamlining the ailing district central co-operative banks and also dealing with the issue of mergers of regional rural banks.
Kumar, who played a pivotal role in turning around the ailing Indian Bank, will be the first woman to head the apex agriculture refinance institution. The post of Nabard chairman has been vacant ever since YC Nanda superannuated on June 30, 2003.
Meanwhile, the Centre is likely to appoint YSP Thorat, executive director, Reserve Bank of India, as the managing director of Nabard.This position has been vacant since December-end 2002, when MVS Chalapati Rao retired. MBN Rao, executive director, Indian Bank, is likely to step into Kumar's shoes as chairman and managing director.