NDA government to make amends in the selection procedure to appoint CMDs and other top officials of PSBs
Shishir Tripathi | November 3, 2014
In order to curb the corruption plaguing the public sector banks (PSBs), the NDA government is gearing up to make necessary amends in the selection procedures for appointing chairman and managing directors (CMDs) and other top officials of PSBs.
According to the new rules adopted by the government, the appointment of a CMD will be made through three screening committees. The appointment has to be cleared by all the three committees which will consist of two members each.
Further, the government is likely to ensure prior vigilance clearance for the candidates, and might avoid a fixed tenure for CMDs.
The new selection process is said to be more transparent with little scope for manipulation, as there would be a considerable number of external members and sub-committees.
According to the finance ministry, interviews for eight posts of CMDs and 14 executive directors (EDs) will be held on November 13 and 14, respectively. The final appointments would be made by the end of the month. This means that the wait for banks such as United Bank of India (UBI), whose CMD Archana Bhargava vacated office eight months ago, would end soon.
With the arrest of the Syndicate bank CMD SK Jain in August in an alleged bribery case and, allegations of corruption against officials of other banks, there is an increased emphasis on the need for serious reforms in the appointments process.
Recently, the Modi government scrapped the selection procedure adopted till now in appointing CMDs and EDs at PSBs. The government decided that a fresh process for selection would have to be implemented for filling the existing vacancies wherein the RBI governor or his nominee, of the rank of deputy governor, should be a part of the process.
While delay in the appointment of the CMDs was a major concern, a bigger one was to ensure that stringent procedures are followed in their appointment to ensure that no tainted candidate was appointed.
Headed by RBI governor Raghuram Rajan, the new interview panel would also have an RBI deputy governor and department of financial services secretary, along with other members.
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. Further, CMDs of Vijaya Bank, Punjab National Bank and Allahabad Bank are due to retire within six months.
Only a bank that fears losing its deposit base or incurring the wrath of its shareholders is likely to recognise losses in a timely manner. In many of our banks, such market discipline is simply not present at the moment, said RBI deputy governor Viral V Acharya.
Farmers would no longer have to fret when the surging river water inundates their fields as scientists are working on rice varieties that are hardy and would grow in fields which have been submerged by flash floods. Dr Nitendra Prakash of crop research station at Bahraich, Uttar Pradesh told
Mumbai recorded its highest ever turnout in the civic elections on Tuesday with 55.28% voters exercising their franchise. Voter turnout in R Central ward of Charkop-Borivali was 61.5% followed by 60
The government is getting ambitious. It wants to divest some PSU shareholding and raise a staggering Rs 72,500 crore during the 2017-18 fiscal. The mood is upbeat among finance ministry mandarins due to the heartening performance of the exchange traded fund (ETF), a basket of 10 bluechip central public ser
While presenting the budget, the finance minister made an announcement about making donations to political parties more transparent. If the proposals to amend the relevant laws are approved by parliament, from April 2017 donations to political parties can be made in cash only up to Rs 2,000; payments of hi
Is UP headed for a hung assembly?