NEWSMAKER: M B N Rao

Man on a mission

M B N Rao

If things work out as planned, when MBN Rao steps down as the chairman and managing director of Canara Bank in June 2008, the bank will have Dena Bank in its kitty "" making it the last hurrah of his four-decade long career.

Canara Bank has taken rapid strides after Rao took over its reins in mid-2005. The bank has overtaken the Punjab National Bank to become the second largest public sector bank in the country after the State Bank of India, and will further improve its lead if it manages to bag Dena Bank.

Rao has shown a penchant for growing Canara Bank's business in the recent past. For instance, the mutual fund arm, which was floundering in a stock market boom, was recently revived when he brought in Robeco Groep NV of Rabo Bank as a strategic partner.

Rao, then, went on to rope in HSBC to start the insurance venture. "These are the two key elements which Rao has pieced together in an establishment which is growing at a steady pace," noted an industry player. Dena Bank will be the icing, he says.

The move to acquire Dena Bank is indeed a well-thought out move. This strategic step will pave way for Canara Bank to storm into the western region. In the past too, the bank has shown an interest in growing its business in the region.

Ernst & Young had assisted Canara Bank for its proposed acquisition of United Western Bank, which has a large presence in Maharashtra, though it was finally bagged by IDBI. Since then, the bank has had the urge to grow through acquisitions. Canara Bank post the Dena Bank combine will have an asset base of close to Rs 1.6 lakh crore with total income of close to Rs 14,000 crore.

Rao will be an ideal candidate to make this marriage happen and take it forward as he has the expertise in turning around Indian Bank during 2000-03.

As executive director of Indian Bank, he was instrumental in formulating and executing the restructuring plan and strategy for the turnaround of Indian Bank when it was experiencing difficult conditions. Indian Bank was the place where Rao started his banking career in 1970.

Rao, among colleagues, is best known for folding up his sleeves and getting the work done. Having built expertise across all aspects of banking such as audit, inspection, accounts, investments, information technology, international division, strategy and credit, Rao is on a constant fine-tuning spree for Canara Bank, which is on a roll.

A voracious reader and genial in temperament, he cherishes the technological upgradation of Canara Bank's system and has worked tirelessly to improve the brand equity of the bank.