Syndicate Bank Chairman-cum-Managing Director (CMD) SK Jain was suspended by Union government on 4 August 2014 after he was arrested by Central Bureau of Investigation (CBI) on 2 August 2014 for accepting bribe.
SK Jain accepted bribe of 50 lakh rupees along with 5 other people for granting credit extension to some private firms involved in Coal Block Allocations Scam. CBI officials revealed that Mr. Jain was receiving payments from two firms, Bhushan Steel and Prakash Industries.
The fall out of the Jain’s arrest
This case exposed the role of Public Sector Banks in disturbing the financial sector of the country. The government, as a result, might use the Syndicate bank CMD arrest to push for merger of small public sector banks. The motive is to ensure that these banks have appropriate checks and safeguards required to track credit appraisal.
About SK Jain
SK Jain was appointed as the Chairman-cum-Managing Director (CMD) of Syndicate Bank in July 2013. He was the youngest CMDs among all the public sector banks’ CMDs. He was appointed for period of five years and was to retire in 2018.
About Syndicate Bank
Syndicate Bank was established in 1925 in Udupi by Sri Upendra Ananth Pai, Vaman Kudva and TMA Pai. In 1969, Government of India nationalized Syndicate Bank along with thirteen major commercial banks. It started with a capital of 8000 rupees and flourished thereafter.
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When: 4 August 2014