With nearly half a dozen chief executives of government banks set to retire in 2012-13, the finance ministry has interviewed 11 candidates to fill up the vacancies.
Chairmen and managing directors of large public sector lenders such as Bank of Baroda, Bank of India, Canara Bank and midsized lenders Allahabad Bank and United Bank of India will retire in the next financial year.
According to banking sources, a five-member selection panel headed by Banking Secretary D K Mittal interviewed 10 executive directors from public sector banks and one deputy managing director of the Small Industries Development Bank of India for the posts. Reserve Bank of India deputy governor Anand Sinha and former RBI deputy governor Jagdish Capoor were also on the selection panel.
According to norms, executive directors who have completed a year in a bank, with two years of residual service, are eligible for promotion to chairman and managing director. However, the government has relaxed the residual period to 21 months.
The government follows the process of lateral transfer for CMD appointments in large government banks, though there have been exceptions. This will mean CMDs of smaller banks will 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 will be promoted.
Executive directors from Central Bank of India, Canara Bank, Punjab National Bank, Union Bank of India, Indian Bank, Corporation Bank, Dena Bank, Oriental Bank of Commerce and Vijaya Bank were interviewed.