Looking for Chairmen for PSU banks; appointed 5 CEO & MDs: Govt

Jayant Sinha says govt has already okayed move to separate posts of Chairman and MDs in public sector banks

Government is in the process of finding non-executive chairmen for public sector banks and it has already appointed managing directors and chief executive officers in five public sector banks.

"The government has appointed MD & CEOs in five public sector banks and the process of selection of non-executive chairman in public sector banks is underway," Minister of State for Finance Jayant Sinha said in a written reply in Lok Sabha today.

He said government has already approved the proposal to separate the posts of Chairman and Managing Directors in public sector banks.

"While the Chairman would be non-executive, Managing Director & Chief Executive Officer (MD & CEO) would be the executive head," he said.

The splitting of the posts of Chairman and Managing Director is in accordance with international best practices, he said.

"While the Chairman would give an overall policy directions to the bank, MD&CEO would be responsible for day-to-day management of the bank," Sinha said.

"The separation would bring in appropriate checks and balances and there would be accountability at the board level as the person executing will be answerable to the board that is headed by a different non-executive Chairman," he added.