FinMin may hold fresh interview for heads of 3 large PSU banks

Interview for executive heads of category A banks could be held once again where candidates from private sector banks can also appear

The finance ministry is mulling holding fresh interviews for the top jobs at three large public sectors banks (PSBs) by also inviting candidates from private sector as it looks for talent from a wider pool of applicants.

There was a proposal that the interview for executive heads of category A banks could be held once again where candidates from private sector banks could also appear, sources said.

If Appointments Committee of the Cabinet (ACC) gives a go ahead on making changes in the appointment rules of the directors in public sector banks, then the Finance Ministry will shortly issue advertisement inviting applications from candidates including from the private sector, sources said.

However, given the structure it is unlikely that any one from private sector would apply for post as renumeration level is quite low.

This is also evident from the fact that recent selection process for Coal India’s chief managing director did not see any professional from private sector expressing interest for the top job at the world's largest coal miner.

The government headhunter PESB ended up selecting a bureaucrat out of 12 who had applied for the top job.

Experts said government may seek applications from the private sector but it is quite unlikely that anyone would apply for the post because of huge difference in salary.

Meeting criteria for the post of top executive of the public sector banks would also be difficult and it would be difficult to get their vigilance clearance and other regulatory clearances, official said.

If approved, this would be for the first time that government would invite applications from private sector for the top posts of state-owned banks. So far, CMDs of PSU banks were selected from public sector banks only.

In the last UPA government an attempt was made to bring in

a private sector professional in India Infrastructure Finance Company (IIFCL), a wholly owned subsidiary of the government.

The then Prime Minister Manmohan Singh rejected the name of Deepak Bagla, a partner with London-based private equity firm 3i, recommended by the Finance Ministry for the post of Chairman and Managing Director of IIFCL.

The Finance Ministry has already sent its recommendation to Department of Personnel & Training (DoPT) for appointment of CEO and Managing Director in the five category B PSU Banks.

According to sources, the Finance Ministry has recommended

the names for the appointment head in Indian Overseas Bank, Vijaya Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India.

Names shortlisted for these banks are Arun Srivastava, R Koteeswaran, Animesh Chauhan, P Srinivas and K K Sansi.