FinMin relaxes norms for top jobs in govt banks

With nine public sector bank chiefs set to retire in 2013-14, the finance ministry has relaxed the eligibility criteria for the selection of chairman and managing director’s (CMD) post in these banks.

According to bankers, a candidate who has served as an executive director (ED) for six months in public sector banks can now aspire to be a CMD. Earlier, only officials who served two years as ED were considered for the CMD’s post.

However, the criterion for residual service — the number of years left for a candidate to serve the bank — has been kept unchanged at two years.

Bankers said the criteria for CMD had been relaxed due to lack of eligible candidates. Some banks that will see new faces at the top in 2013-14 are Syndicate Bank, Andhra Bank, Bank of Maharashtra, Central Bank of India, Corporation Bank, Union Bank of India, and IDBI Bank, among others. Sources said although nine bank chiefs would retire in FY14, 10 candidates might be selected. The top post at Kolkata-based United Bank of India will fall vacant in December this year, with the retirement of chairman and managing director Bhaskar Sen.

The government will also interview general managers for the post of EDs. These will fall vacant following the promotion of EDs to CMDs or due to retirement.

While the finance ministry has started the process to fill vacancies for the next financial year, it is yet to decide on those created in the current financial year. While the top post in Bangalore-based Canara Bank has been vacant since September, the chairman’s post in another large lender, Bank of Baroda, will also fall vacant, with its present chief M D Mallya retiring towards the end of this month.