The Appointments Committee of Cabinet (ACC) has approved the guidelines for selection of Managing Directors (MDs) and Chief Executive Officers (CEOs) in Public Sector Banks (PSBs) other than the five large PSBs and the hiring process will start from the next month.
- The selection to the top job in the PSBs would be 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.
- The new norms have excluded private sector executives to become part of the selection process of top management in the PSBs.
- Executive Directors of nationalised banks, DMDs of IDBI Bank and MDs of associate banks of SBI who have risen from the associate bank services, with one year of service as ED/DMD/MD and who have two years remaining service are also eligible for consideration as MD & CEO of PSBs.
- 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 made by the Appointments Board as per the existing methodology of interaction of the candidates with three panels of the sub-committee of the Appointments Board.
- The candidates will be rated out of 100 marks with 50 marks to be awarded for Annual Performance Appraisal Reports (APARs) of five years and 50 marks assigned on the basis of performance during interaction with the sub-committee.
The committee also laid down the eligibility criteria for the post of executive directors of the nationalized banks. General Managers of nationalized banks and CGMs of associate banks of SBI who have risen from the associate banks service, and who have completed two years of service are eligible for consideration for the post of executive director.
Important Points to Remember:
- There are total 27 PSBs in India currently – 19 Nationalised banks + SBI + 5 associates of SBI + IDBI bank + Bhartiya Mahila Bank.