Starting next financial year, six large public sector banks, with business of more than Rs 3 lakh crore, are set to get a third executive director each. The finance ministry wants the new executive directors to focus exclusively on human resources and information technology.
The government would also appoint a second executive director in small public sector banks that have just one executive director. Currently, except for four government banks, all others have two executive directors.
As a result, two dozen executive directors’ posts need to be filled up in the next financial year. The finance ministry has shortlisted around 48 general managers for interviews. General managers who have completed two years at the post and have three years of residual service are eligible for these posts.
While the finance ministry had relaxed the eligibility criteria while selecting chairmen and managing directors in public sector banks, the eligibility criteria for the post of executive directors has not been relaxed.
The interview panel includes banking secretary in the finance ministry, D K Mittal, Reserve Bank of India (RBI) deputy governor Anand Sinha, and former RBI deputy governor J Capoor. The interviews would be conducted by the end of this month.
Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Union Bank of India and Central Bank of India that would get a third executive director each, while smaller banks like United Bank of India, Dena Bank, Bank of Maharashtra and Punjab and Sind Bank are likely to get a second executive director.
The finance ministry had recently finalised the candidates for the top posts of public sector banks. Banks that would get new chiefs in the next financial year are Canara Bank, Bank of Baroda, Bank of India, United Bank of India, Dena Bank and Allahabad Bank.
The finance ministry has done away with the system of lateral transfers while appointing chiefs of large public sector banks. Earlier, for large banks like Bank of Baroda and Bank of India, a chairman of a smaller bank was given charge. However, this time, executive directors have been promoted and are set to take up the roles of chiefs.