The Union Government on 20 August 2015 issued norms for selection of Managing Directors (MDs) and Chief Executive Officers (CEOs) in Mid and Small Public Sector Banks (PSBs).
The guidelines were issued after the approval by the Appointments Committee of Cabinet (ACC) for selection of MDs & CEOs in Public Sector Banks (PSBs) other than five large Public Sector Banks.
Guidelines for Selection of CEOs and MDs of Small PSBs
• The top post in the PSBs would be filled from the existing pool of executive directors (EDs) or deputy managing directors (DMDs) in state-owned banks with a remaining service period of 2 years. Henceforth the private sector executives would not be the part of the selection process of top management.
• The DMDs of IDBI Bank, the EDs of nationalised banks and MDs of associate banks of State Bank of India (SBI) who have one year of service experience as ED/DMD/MD and who have two years of service left are entitled for post of MD & CEO.
• Other than five large PSBs, for the remaining banks hiring will be conducted from the pool of executive directors of the public sector banks itself.
• For the five large banks viz. Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank and IDBI Bank, there will be a separate procedure for selection.
• The selection will be done by the interaction of the candidates with three panels of the sub-committee of the Appointments Board, where the candidates will be rated out of 100 marks.
• 50 marks will be awarded for Annual Performance Appraisal Reports (APARs) of five years and 50 marks will be assigned on the basis of performance during interaction with the sub-committee.
• For the post of Executive Director, the General Managers of nationalized banks and CGMs of associate banks of SBI, who have two years of experience of service will be eligible.
The guidelines came following the irk raised due to appointment of two private sector bankers to head Bank of Baroda and Canara Bank. This selection process will be followed from September 2015.
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Who: Union Government
What: Issued Guidelines
When: 20 August 2015