PSBs Current Affairs

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

Selection Methodology:

  • 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.

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Union Government appoints two private sector professionals to head BoB, Canara Bank

Union government has appointed two private sector banking professionals as Managing Director (MD) and Chief Executive Officer of Bank of Baroda (BoB) and Canara Bank.

This is the first time that Union government has appointed the two candidates from the private sector to head the Public Sector Banks (PSBs).

Appointed persons are

  • P S jayakumar: MD and CEO of Bank of Baroda (BoB).
  • Rakesh Sharma: MD and CEO of Canara Bank.

Apart from these appointments, Union Government also appointed MD and CEO of other three PSBs who are serving government officials. They are

  • MO Rego: MD and CEO of Bank of India (BoI).
  • Kishore Kharat Piraji: MD and CEO IDBI Bank.
  • Usha Ananthasubramanian: MD and CEO of Punjab National Bank (PNB).

Union government appointment non-executive chairman for 5 PSUs namely Bank of India, Canara Bank, Bank of Baroda, Indian Bank and Vijaya Bank.

It should be noted that these appointments were made by Union Finance Ministry as part seven pronged plan called Indradhanush Mission to revamp functioning of PSBs.

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