Govt Opens Up Top Positions In Nationalized Banks To Private Sector Candidates
Candidates holding the post of Chief Vigilance Officer (CVO) will not be eligible to be considered for appointment to the post: Reports
MUMBAI: In a major move, the government of India has opened senior leadership positions in public sector banks (PSBs) to private-sector professionals.
According to new set of guidelines issued by the Appointments Committee of the Cabinet, out of four positions of Managing Director in State Bank of India, one position has been opened for private sector candidates and persons working in public sector financial institutions. So far, all MD and Chairman positions used to be filled by internal candidates. Similarly, the revised guidelines also permitted private sector candidates to appear for the selection process of executive director (ED) in the public sector banks. Besides SBI, there are 11 public sector banks, including Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Bank of India.
According to the revised guidelines, to compete for top roles in state owned banks, private sector candidates must have a minimum of 21 years of experience with at least 15 years of banking experience and at least 2 years at the bank board level or three years at the highest level below the board. The guidelines also specify procedures for waiting lists, additional charge assignments, and penalty disqualifications. The revised consolidated guidelines supersede all previous ACC directives on PSB appointments. Further, the terms of office, salary, and superannuation remain governed by existing laws, such as the SBI Act, 1955, and the Nationalised Banks (Management and Miscellaneous Provisions) Scheme.
From the date of coming into force of these guidelines, it said, the first vacancy of MD, SBI, would be treated as open. Subsequent vacancies, arising after filling of the first vacancy, would be filled by eligible candidates holding positions in PSBs, it added. With regard to EDs in nationalised banks, it said one position in a bank would be open for all the eligible candidates, including private sector candidates. There are four EDs in large nationalised banks, while two positions in small lenders. For private candidates, it said, the person should have a minimum of 18 years of experience, with 12 years in banking, including 3 years at the highest level below the board level.
The officer of the nationalised banks with a combined service of four years at the Chief General Manager and General Manager level till FY2027-28. Afterwards, the eligibility condition will be Chief General Manager with two years of service, it added.
Candidates holding the post of Chief Vigilance Officer (CVO) will not be eligible to be considered for appointment to the post.
Meanwhile the United Forum of Bank Unions (UFBU), representing nine trade unions of officers and workmen across all banks have opposed the move. “By authorising lateral entry of private-sector executives into statutory leadership positions, removing APAR-based evaluation, and introducing HR-agency assessments, these guidelines alter the public character, accountability framework, and legislative intent underlying the nationalisation of banks and the State Bank of India Act, 1955, that too without any Parliamentary amendment or consultation,” said UFBU.
