FinMin may relax norms for appointment of CEO, MD in 5 PSU banks

As per convention, for every vacancy a minimum four candidates are interviewed by government

The finance ministry might relax the eligibility criteria for selection of chief executive officers (CEOs) and managing directors (MDs) of five public sector banks (PSBs), if applicants in the ongoing selection process fail to pass muster with the Reserve Bank of India (RBI).

About 40 applications were received by the department of financial services for appointment as MD and CEO in Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank and IDBI Bank for a fixed term of three years.

“If RBI is not able to provide us adequate number of shortlisted candidates for the interview, the ministry may have to invite applications again with somewhat relaxed criteria,” a source said.

According to convention, for every vacancy, a minimum four candidates are interviewed by the government. Of the total aspirants, about three candidates from the government sector, mostly from financial institutions, applied for these vacancies.

The last date for submission of applications for these posts was March 21 and 40 applications were received.

This is the first time when executives from private sector banks would be part of the selection process for top jobs in PSBs. The public notice was issued in February after the new appointment process was cleared by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. Applicants, according to the criteria, should have at least 15 years of experience in mainstream banking, of which at least three years should be served at the board level.

Candidates should be in the age group of 45-55 years as on the date of advertisement, it said. It also said shortlisted candidates would be called for preliminary interaction for the purpose of determining the eligibility.

The decision of the screening agency, that is RBI, will be final. Candidates duly recommended by the agency will only be called for the interview.

The salary package payable to the appointees would be flexible. The other terms and conditions of appointment will be those as might be specified by the government at the time of appointment, according to the advertisement.