In an unprecedented move, sending a strong signal to the financial sector against abusing official position, the government on Monday removed Sushil Muhnot from the post of Chairman and Managing Director of Bank of Maharashtra with immediate effect.This action comes four days before Muhnot was to superannuate.It is not clear whether the RBI was consulted for such an action.
Muhnot is understood to have come under the lens of the Finance Ministry for misuse of powers, although several people in banking circles feel that the alleged violations were mostly over frivolous issues.
Ravindra Marathe, who was Executive Director at Bank of India, on Monday assumed charge as MD and CEO of Bank of Maharashtra. He was to assume charge on October 1. The public sector bank saw a 93 per cent rise in non-performing assets.