FinMin initiates process of identifying chairmen for PSU banks

The finance ministry has initiated the process of identifying retired bureaucrats and bankers who could be appointed as non-executive chairmen of various public sector banks (PSBs).

Vacancies for the posts of non-executive chairmen have arisen following the government’s decision to bifurcate the post of chairman and managing director at PSBs last year.

There are eight vacancies for this slot at various public sector banks including Punjab National Bank, Bank of Baroda, Syndicate Bank and Canara Bank. The government is also looking for appointing chairmen at Bank of India and IDBI Bank in place of the incumbents.

In December, the government had appointed managing directors and chief executive officers in four state-owned banks — Indian Overseas Bank, Oriental Bank of Commerce, United Bank of India and Vijaya Bank.

People would be shortlisted according to the eligibility guidelines issued by the finance ministry, sources said.

There would be no interviews for these people who could either be former private or public sector bankers or retired bureaucrats, they said.

The finance ministry has initiated the process of selection and decision in this regard would be taken soon, the sources said.

Besides, the ministry has also invited applications from eligible candidates at five large public sector banks.

The last date for filing application for these vacancies is tomorrow as per the relaxed eligibility criteria.

Last month, the ministry had issued norms for the appointment of non-official directors.

As per the new norms, the applicant would need to have at least a graduation degree and should be less than 67 years of age, with 20 years of work experience.

Eminent persons with special academic training or practical experience in the fields of agriculture, rural economy, banking, cooperation, economics, business management, among others would be considered for the post.

Retired senior government officials; academicians; directors of premier Management; Banking Institutes; professors and Chartered Accountants with 20 years experience would also be considered.

A high-level search committee would go through the applications and recommend names to the government for approval.