The government has relaxed the norms for appointment to top jobs at public sector banks.
To be eligible for the post of chairman and managing director (CMD), a candidate will now require at least 18 months of residual service, with six months experience as an executive director (ED). Earlier, a candidate was required to have at least two years of residual service, with one-year stint as an ED.
The government has called 20 EDs for interviews by the end of this month. Eight CMD posts will fall vacant this financial year.
In addition, the government has called 30 general managers for the interview for promotion as EDs. During 2011-12, a total of 13 vacancies are expected to arise. To be eligible for the ED’s post, a candidate should have two years of residual service and two years of experience as a general manager. The norms for appointing EDs, however, have not been changed.
Central Bank of India, Corporation Bank, Dena Bank, Andhra Bank, Syndicate Bank, OBC, Bank of Maharashtra and Union Bank of India will see new faces at the top this year.
The appointment at Central Bank of India will be lateral, that is, a CMD of a smaller bank will be given charge.
The norms were relaxed during the previous selection process, too. Then, the residual service requirement was made 15 months.
The government may also consider appointing a second ED in banks that have a business of Rs 1 lakh crore and above.
Some banks — such as United Bank of India, Dena Bank and Punjab and Sind Bank — have recently entered the league and, therefore, are eligible for a second ED.
The search panel to interview candidates comprises RBI Deputy Governor Anand Sinha, Financial Services Secretary S K Sharma and former HDFC Bank chairman Jagdish Capoor, among others. The process for appointing the CMD of Punjab & Sind Bank has started. The post has been vacant for nearly a year. Sources say the finance ministry has initiated the process of shortlisting a suitable candidate. The selection of the chairman of Punjab & Sind Bank is not a part of the interview process followed for other banks.
