FinMin brings back lateral transfer of CMDs in govt banks

Ashwini Kumar may move to BoB; 6 EDs identified to fill up vacancies in FY15

The finance ministry has shortlisted the names of executive directors who are likely to head public sector banks in 2014-15. Six public sector banks will see their chairmen and managing directors retiring in 2014-15, which are Bank of Baroda, Indian overseas bank, Canara Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.

 

The selection panel comprising Anand Sinha, deputy governor, Reserve Bank of India and Rajiv Takru, secretary, financial services in the ministry of finance, among others, interviewed 19 executive directors last week.

 

Sources indicate that Arun Srivastava, who is an ED in Bank of India has been identified to head Indian Overseas Bank. SK Kalra of Andhra Bank may get the charge of Canara Bank and BB Joshi of Bank of Baroda may head for OBC. Similarly, RK Goel of Central Bank of India may be given the charge of Vijaya Bank and MK Jain of Punjab & Sind bank may get the top job in Kolkata-based United Bank.

 

Ashwini Kumar, who is the CMD of Dena Bank may get a chance to lead Bank of Baorda, as the finance ministry is contemplating to bring back the process of lateral transfer. The system of lateral movement – that is appointing CMDs of small banks to large banks -- was abolished in the last financial year. The vacancy at Dena Bank will then be filled by Arun Tiwari who is an ED at Allahabad Bank.

 

For the present round of selection, the finance ministry has relaxed the norms for selection of chairman and managing director in public sector banks. The norms that a candidate needs to complete one year as executive director to become eligible for chairman and managing director was relaxed. However, the criteria for residual service of two years of a candidate were not tweaked.

 

The first vacancy will come only in August 2015 – that is after the general elections -- when BoB and IOB top posts will fall vacant. Though the candidates have been identified, clearances from vigilance commission can only be obtained 1-2 months prior to the appointment.