Large public sector lenders like Bank of Baroda, Bank of India and Canara Bank and mid-sized lenders like Allahabad Bank and United Bank of India would see their chairmen and managing directors (CMDs) hanging up their boots in the next financial year. Along with the CMDs, five-six executive directors would also retire or be promoted as CMDs in the next financial year. The government has already initiated the process of filling up the top posts.
The government has asked banks to furnish the details of general managers who would be eligible for promotions. A general manager who has held the post for three years and has two years of residual service would eligible for promotion.
The government follows the process of lateral transfer for CMD appointments in large government banks, though there were exceptions in the past. This would mean current CMDs of smaller banks would be given charge of Bank of Baroda, Bank of India and Canara Bank. In the case of Allahabad Bank and United Bank of India's top jobs, executive directors would be promoted. Candidates who completed one year in a bank as an executive director, with two years of residual service, are eligible for promotion.
Among current CMDs of smaller banks, Arun Kaul of UCO Bank, T M Bhasin of Indian Bank and M Narendra of Indian Overseas Bank would be eligible to take charge of a large bank. A candidate of a smaller bank needs to be a CMD for at least a year to be eligible for the CMD’s post of a large bank.
The government would also conduct interviews for selecting a managing director for State Bank of India, which has a provision for four managing directors. It currently has three. Three deputy managing directors, Shyamal Acharya (associates and subsidiaries), Arundhati Bhattacharya (corporate development) and Santosh Nayar (corporate banking), would appear for interviews for the post of managing director, along with S Vishvanathan, managing director and chief executive officer of SBI Capital Markets.
SBI sources said the selection of the fourth managing director was important, as the candidate would be a contender for the chairman's post once the term of current chairman P Chaudhuri ended in September 2013. The other three managing directors would not be eligible, since they would not have two years of residual service.