Govt scraps process to select CMDs, EDs of public sector banks

The existing process was cancelled on the basis of a report of the committee formed to examine the selection procedure

GN Bureau | October 28, 2014



The government has cancelled the selection procedure followed till now in appointing CMDs and EDs at public sector banks.

In a statement issued on October 27, the finance ministry said it would fill up the vacancies ‘expeditiously’, and a new process for selection of CMDs/EDs would soon be finalised to address future vacancies.

The existing process was cancelled on the basis of a report of the committee formed to examine the selection procedure.

At present, six PSBs are functioning without CMDs: Canara Bank, Syndicate Bank, United Bank of India, Oriental Bank of Commerce, Bank of Baroda and Indian Overseas Bank.

Scrapping of the old selection process means these banks might have to wait longer to get their new chiefs. Now eight posts of CMDs and 14 of EDs will be filled under the new procedure.

Ministry of finance said: “The government has decided that a fresh process for selection will have to be implemented for filling up these existing vacancies wherein the governor, RBI or his nominee of the rank of deputy governor should be a part of the process.”

Governance Now, had earlier, reported that the delay in appointment of the heads of the banks were probably because the government is contemplating to bifurcate the posts of chairman and managing director in PSBs and adopt a new selection procedure.

The splitting of the CMD post has been recommended by committees and some of the past RBI governors as well.



 

Comments

 

Other News

Will put an end to corruption, VIP culture in railways: Lohani

 Former Air India chief Ashwani Lohani on Thursday took the charge as Chairman Railway Board and said his main thrust would be to put an end to corruption and VIP culture. Lohani told mediapersons that it was an emotional moment for him to join back the railways as its CRB.  He said saf

Can Trump rein in Pakistan?

Pakistani leaders must be feeling frustrated after US president Donald Trump warned Islamabad that America would not remain a silent spectator if Pakistan continued to be a safe haven for terrorists. Secretary of State Rex Tillerson also said Pakistan could lose the privilege of being a US ally if it &ldqu

Privacy a fundamental right: SC

 A nine judge constitutional bench of the Supreme Court has unanimously upheld that privacy is a fundamental right protected under the constitution.  The judges have upheld that privacy is protected under constitution’s Article 21 and Part 3, which deal with fundamental rights.

People of the woods

Incense sticks were lit. Ram Sahay Marawi, 70, was ready to break the coconut over the ground – an auspicious ritual before starting anything new. He along with fellow tribal villagers was worshipping grass seed balls that they had prepared mixing grass seeds in the mud. Everyone around waited for Ma

Lohani is new chairman of railway board

Air India CMD Ashwani Lohani was appointed the Chairman of Railway Board on Wednesday after incumbent AK Mital put in his papers. Mital tendered his resignation to railway minister Suresh Prabhu following two derailments in Uttar Pradesh.   Lohani, a 1980-batch office

Land swap proposal between AAI and MMRDA approved

 The government on Wednesday gave its approval for transfer of 40 acres of Airports Authority of India’s (AAI) land at Dahisar to Mumbai Metropolitan Region Development Authority (MMRDA) for its metro shed, swapping with 40 acres of Maharashtra government land at Gorai in Mumbai.  



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter