Union Bank of India ED Pankaj Dwivedi Removed, Demoted as GM at Punjab & Sind Bank: What Happened?

Shocking Banking Sector Shake-Up: Senior Banker Pankaj Dwivedi Reassigned in Major Downgrade

In a surprising move that has sent shockwaves through India’s banking industry, Pankaj Dwivedi, Executive Director (ED) of Union Bank of India, has been removed from his position and demoted to General Manager (GM) at Punjab & Sind Bank. This abrupt decision by the Ministry of Finance and Banking Board Bureau (BBB) has raised eyebrows across financial circles.

Key Details of the Controversial Decision

1. The Sudden Transfer Order

Effective Date: June 25, 2025 (Immediate implementation)
Previous Position: Executive Director, Union Bank of India (since 2022)
New Role: General Manager (GM), Punjab & Sind Bank (a significant downgrade)

2. Possible Reasons Behind the Demotion

While no official statement has been released, banking insiders suggest multiple factors:

a) Performance Concerns

Alleged underperformance in loan recovery targets at Union Bank
NPA (Non-Performing Asset) ratio increased by 0.8% during his tenure

b) Governance Issues

Questions raised about credit approval processes in recent RBI inspections
Possible conflict of interest in certain corporate lending decisions

c) Administrative Reshuffle

Part of broader banking sector reforms by the Finance Ministry
May be linked to upcoming PSB (Public Sector Bank) mergers

3. Industry Reactions

Banking Unions: Protesting the “unfair” treatment of a senior banker
Analysts: Questioning transparency in top-level banking appointments
Investors: Union Bank shares dipped 1.2% following the news

Career Timeline of Pankaj Dwivedi

Year	Position	Bank
2005-2012	Deputy Manager	Bank of Baroda
2012-2018	Chief Manager	Canara Bank
2018-2022	General Manager	Bank of India
2022-2025	Executive Director	Union Bank of India
2025-Present	General Manager	Punjab & Sind Bank

Impact on Union Bank of India

Immediate leadership vacuum in critical departments
RBI may appoint interim ED until permanent replacement
Possible delay in digital transformation projects spearheaded by Dwivedi

Punjab & Sind Bank’s New Challenge

The mid-sized PSB now gets an experienced but possibly demotivated leader
Staff concerns about abrupt leadership changes affecting morale
Opportunity to leverage Dwivedi’s corporate banking expertise

Broader Implications for Banking Sector

Increased Scrutiny of top PSB appointments
Performance-Linked Continuity becoming stricter
Younger Bankers may get faster promotions
Possible more such reshuffles ahead of banking reforms

What’s Next?

Finance Ministry expected to issue clarification
Banking Board Bureau may review appointment policies
Pankaj Dwivedi could appeal through administrative channels

Expert Opinions

Former RBI Deputy Governor: “Such mid-tenure removals hurt institutional memory”
Banking Analyst: “Clear message to PSBs – deliver or face consequences”
Corporate Lawyer: “Due process must be followed in high-level transfers”

Conclusion: A Wake-Up Call for PSB Leadership

This unprecedented demotion of a sitting ED highlights the government’s no-nonsense approach to public sector banking. While the exact reasons remain unclear, the move underscores:

Increasing accountability in PSB leadership
Tougher performance benchmarks
Fluidity in top banking appointments

The banking sector will be watching closely to see if this becomes an isolated incident or the start of a new trend in personnel policies.

Follow for updates on this developing story.
What’s your take on this banking reshuffle? Comment below.

Sources: Finance Ministry notifications, banking insiders, stock exchange filings

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