The Hindu Business Line : Top-level shake-up imminent at Peerless

Changes
The Chairman, Mr D.N. Ghosh, and a Director, Mr Naresh H. Thanwala have decided to step down
Mr Dipankar Basu is likely to take over as Chairman while Mr Deepak Mukherjee and Mr Jayanta Roy are expected to take over as full-time directors

Kolkata , Aug. 14

A top-level shake-up is imminent at the Peerless General Finance & Investment Company (Peerless), a major residuary non-banking company. Mr D.N. Ghosh, Chairman, and Mr Naresh H. Thanawala, a Director, have decided to step down. Mr Dipankar Basu, presently a Director, is likely to take over as Chairman. Mr Deepak Mukerjee and Mr Jayanta Roy, inducted into the board as additional directors, will take over as full-time directors.

Stepping down

Mr Ghosh, a former Chairman of State Bank of India, who was appointed Chairman of Peerless in 1996, has decided not to seek re-election at the forthcoming annual general meeting of the company. Mr Thanawala, Mumbai-based actuaryassociated with Peerless for nearly two decades, will also not seek re-election.

Mr Ghosh confirmed to Business Line that he was not seeking re-election. "In my Chairman's speech at the forthcoming annual general meeting I'll announce my decision to quit Peerless," he said, adding, "I've completed 10 years and it is time to call it a day."

`Eventful years'

"I did not come to Peerless on my own; I agreed to come only at the insistence of the then Governments at the Centre as well as at the State," he said, pointing out that the years in Peerless had been eventful, through many ups and downs. The company has crossed many hurdles and is now poised for a big leap forward. He, however, made it clear that Peerless must change its business practices and rework its strategies to survive present-day competition. When contacted in Mumbai, Mr Dipankar Basu, also a former Chairman of State Bank of India, said he had no information about his taking over as the Chairman of Peerless. "As far as I know, nothing has yet been decided," he said.

Mr Deepak Mukerjee, who will soon take over as full-time Director, is a former Managing Director of IDBI Bank. Mr Jayanta Roy, who will also become Director at the forthcoming annual general meeting of the company, is the son of the present Managing Director of Peerless, Mr S.K. Roy.

Mr Roy's family holds nearly two-thirds of the shares of Peerless.

Financial results

In 2005-06, Peerless posted a profit after tax of Rs 117.3 crore as compared to Rs 65.4 crore in 2004-05. The collection during the year amounted to Rs 1,121 crore, which was Rs 8.1 crore higher than the previous year. However, the maturity payment to depositors was Rs 1,739.7 crore (Rs 2926.3 crore). The investment income at Rs 441.4 crore was Rs 22.4 crore lower than the previous year, the average yield having declined to 8.48 per cent in 2005-06 from the previous year's 9.11 per cent. The board of directors has recommended a dividend of 30 per cent (Rs 30 per equity share of Rs 100 each) and a special one-time dividend of 30 per cent to commemorate the Platinum Jubilee Year, thus totalling 60 per cent.