Centre likely to hire public sector bank EDs through lateral entry

The Union government, for the first time, is exploring roping in professionals from the private sector to join as executive director (ED) on the board of public sector banks (PSBs). As a first step in this initiative towards governance reforms, the government has proposed — in the Finance Bill, 2019 — increasing the number of full-time directors from four to five for large PSBs.

A senior official in the finance ministry said the idea was to create specialised positions for whole-time directors in PSBs. While there may be one ED for technology, another may look after micro, small, and medium