Government issues norms for selection of Chiefs of smaller PSU Banks

Chiefs of all public sector banks, other than five large ones, will come from within the talent pool of state-owned lenders, according to the new selection guidelines issued by the government on Thursday.

The selection process will start next month, the Finance Ministry said in a statement.

According to the guidelines, the selection to the top job in the PSU banks would be 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.

The guidelines come a week after the government had announced appointment of two private sector bankers to head Bank of Baroda and Canara Bank while also making appointments to three other large state-run banks from the public sector.

The new norms have excluded private sector executives to become part of the selection process of top management in the public sector banking space.

"Appointments Committee of Cabinet (ACC) has approved the guidelines for selection of MDs & CEOs in Public Sector Banks (PSBs) other than five large Public Sector Banks," an official statement said.

"Executive Directors of nationalised banks, DMDs of IDBI Bank and MDs of associate banks of SBI who have risen from the associate bank services, with one year of service as ED/DMD/MD and who have two years remaining service are eligible for consideration as MD & CEO," it said.

Earlier this week, Financial Services Secretary Hasmukh Adhia had said that hiring of CEOs and managing directors in PSU banks would be from existing public sector talent pool and not from outside.

"For five large banks we had different procedure. For remaining banks, we are going to hire from the pool of executive directors of the public sector banks itself," he had told PTI in an interview.

There is a CEO and MD vacancy in Indian Bank and Andhra Bank and there would be another vacancy in UCO Bank by the end of this month.

Besides, a vacancy has been created with the movement of chairperson and managing director of Bharatiya Mahila Bank to PNB as CEO and MD.

The statement further said that the selection will be made by the Appointments Board as per the existing methodology of interaction of the candidates with three panels of the sub-committee of the Appointments Board.

The candidates will be rated out of 100 marks with 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, it said.

"The selection process is to be initiated in the next month," it added.

The guidelines have also laid down the eligibility criteria for the post of executive directors of nationalised banks.

General managers of nationalized banks and CGMs of associate banks of SBI (State Bank of India) who have risen from the associate banks service, and who have completed two years of service are eligible for consideration for the post of executive director.(NDTV)