Government Issues Norms for Selection of CEOs and MDs of Smaller PSU Banks
After the irk raised due to appointment of two private sector bankers to head Bank of Baroda and Canara Bank the government has issued norms for selection of MDs and CEOs in Mid and Small Public Sector Banks (PSBs) on 20 August 2015.
The guideline was issued after the approval by the Appointments Committee of Cabinet (ACC) for selection of MDs & CEOs in Public Sector Banks (PSBs) other than five large Public Sector Banks.
As per the guidelines:
- The top post in the PSBs would be filled from the existing pool of executive directors (EDs) or deputy managing directors (DMDs) in state-owned banks with a remaining service period of 2 years.
- Henceforth the private sector executives would not be the part of the selection process of top management in the public sector banking space.
- The DMDs of IDBI Bank, the EDs of nationalised banks and MDs of associate banks of SBI who have one year of service experience as ED/DMD/MD and who have two years of service left are entitled for post of MD & CEO.
- Other than five large PSBs, for the remaining banks hiring will be conducted from the pool of executive directors of the public sector banks itself.
- For the five large banks viz. Punjab National Bank, Bank of Baroda, Bank of India,Canara Bank and IDBI Bank there will be a separate procedure for selection
- The section will be done by the interaction of the candidates with three panels of the sub-committee of the Appointments Board, where the candidates will be rated out of 100 marks.
- 50 marks to be awarded for Annual Performance Appraisal Reports (APARs) of five years and 50 marks assigned on the basis of performance during interaction with the sub-committee.
Eligibility criteria for executive directors of the nationalized banks:
For the post of executive director the General Managers of nationalized banks and CGMs of associate banks of SBI who have risen from the associate banks service who have two years of experience of service are eligible.
Note: There are total 27 PSBs in India – 19 Nationalised banks + 6 State bank group (SBI + 5 associates) + 1 IDBI bank (Other Public Sector-Indian Bank) = 26 PSBs + 1 Bhartiya Mahila Bank.