RBI, Cabinet secy scrutinising PSB chief appointments

On the heels of the Syndicate Bank chairman's arrest for alleged graft, Finance Minister Arun Jaitley on Thursday said the government will deal with public sector banks (PSBs) sternly and is scrutinising recent appointments of bank heads.

"The time has come to be strict with PSU banks. I have urged the Cabinet secretary and the RBI governor to examine recent appointments in public sector banks," he told reporters here.

The CBI had recently written to the finance ministry alleging "irregularities" in appointments of chiefs of PSBs, following which Jaitley called for a closer scrutiny of recent appointments.

Syndicate Bank Chairman and Managing Director (CMD) S K Jain was arrested earlier this month for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of a company.

A panel headed by the RBI governor selects PSB chiefs.

Applications are processed by the Cabinet secretary and placed before the Appointments Committee of Cabinet (ACC) for its final approval.

State-run banks in which CMDs were appointed recently are Canara Bank, Corporation Bank, Bank of India, IDBI Bank, Allahabad Bank and Central Bank of India.