PNB to create CGMs under new autonomy deal

The Punjab National Bank (PNB) will be one of the first few public sector banks to exercise the new-found freedom following the government's recently announced managerial autonomy package.

The Delhi-based bank's board has decided to create the post of chief general managers (CGMs) in an effort to offer growth opportunity to its senior executives.

The State Bank of India (SBI) has been working on a performance-linked pay package for its employees and Bank of Baroda is planning to increase its number of general managers.

The bank has formed an internal committee of general managers to look at what other initiatives can be taken following the autonomy package.

So far only the country's largest bank, the State Bank of India, has chief general managers who are the functional heads of businesses.

All other public sector banks have a set of general managers who are the functional heads working under the executive director and chairman and managing director-both appointed by the government of India.

"We feel the need for a senior level hierarchy. There are general managers who will never be made executive directors. Unless there is a growth path created for them, they will lose interest in work. The logical solution could be creation of a tier between executive director and general managers," said a senior PNB official.

This is a way to reward senior general managers in the bank, some of whom have been in the same post for over six years.

PNB is also in the process of creating more posts of general managers to look into new businesses such as mutual funds, risk management and other areas.

The bank's consultant, Boston Consulting Group, which has been working with PNB for its business process re-engineering exercise (PNB Parivartan) will help the bank decide on the number of new posts of general managers.

The bank is also looking at campus recruitment of MBAs in a much larger way.

As of now, the fresh recruitments have only been meagre. "Following the autonomy package, we can offer a cost-to-company package to students on campus like the ones offered by private companies so as to attract more talent. We are also looking at fast track merit-based promotions," said bank officials.