The Department of Financial Services (DFS) under the Union Ministry of Finance on 31 December 2014 appointed the Managing Directors (MD) and Chief Executive Officers (CEO) of four Nationalised Banks.
The chiefs were appointed on the recommendations of Appointments Board chaired by the Reserve Bank of India (RBI) Governor Raghuram Rajan.
1) Bank of India Executive Director R Koteeswaran was appointed as MD and CEO of Indian Overseas Bank (IOB).
2) Bank of India Executive Director Animesh Chauhan was appointed as MD and CEO of Oriental Bank of Commerce (OBC).
3) Punjab & Sind Bank Executive Director Kishore Kumar Sansi was appointed as MD and CEO of Vijaya Bank.
4) Bank of Baroda Executive Director P. Srinivas was appointed as the MD and CEO of United Bank of India.
They are appointed for a period of three years or till the date of superannuation, whichever is earlier. The appointment in Syndicate bank is still under consideration of Government.
For the first time, PSU banks will have a non-Executive Chairman, giving operational responsibility to Managing Director and Chief Executive Officers.
Revised Selection Procedures for the Chiefs of the PSBs
In PSBs, so far the top executive was designated as CMD, with the exception of the largest lender State Bank of India. However, the posts of Chairman and MD in the private sector banks was separated in 2007 as per the recommendations of AS Ganguly committee constituted by RBI.
The bifurcation of the CMD's post was also suggested by Reserve Bank to the Union Finance Ministry for PSBs. However, the recommendation had been pending with the government for years.
Meanwhile, the arrest of Syndicate Bank CMD S K Jain in August 2014 for allegedly receiving a bribe of 50 lakh rupees brought the issue to the fore again.
Henceforward, the Union Government has separated the post of Chairman and Managing Director of a Public Sector Bank (PSB). Now, in the new appointments of PSBs other than SBI, the Chairman will be a part time Board Member who would preside over the Board Meetings and will not be an Executive Chairman.
The procedure for selection of part time Chairman will be announced by the government later. For three Large Banks, i.e. Bank of Baroda, Punjab National Bank and Canara Bank, the Government has decided to go for a fresh selection procedure with a view to widen the search of candidates.
When: 31 December 2014