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.