Govt to start selection for 8 PSU bank heads by Nov-end

After scrapping selections made by the previous UPA regime, the government is likely to begin a fresh exercise for shortlisting heads of 8 public sector banks, including IOB and BoB, in the last week of November.
A panel, headed by RBI Governor Raghuram Rajan, is expected to hold interviews of eligible candidates for the post of Chairman and Managing Directors of 8 public sector banks in the last week of November, sources said.
Besides RBI Governor, sources said, the other members of the interview panel would include Deputy Governor of RBI, Department of Financial Services Secretary and a few external members.

The interview process would be objective and transparent, sources said, adding that the interviews of eligible candidates would be held in Mumbai.
Following the shortlisting by the high level panel, the name of the candidates would be sent to Appointments Committee of Cabinet (ACC) and other necessary clearances.
Earlier this week, the government scrapped the selection of six PSU bank heads and 14 executive directors (EDs) during UPA tenure following a separate panel finding irregularities in the process.

The UPA government had shortlisted heads of Bank of Baroda (BoB), Canara Bank, Indian Overseas Bank (IOB), Oriental Bank of Commerce, United Bank and Vijaya Bank.

Besides, vacancies of CMDs have arisen in Punjab National Bank and Syndicate Bank due to non-grant of extension and arrest respectively.
Following the arrest of Syndicate Bank Chairman and Managing Director S K Jain, the ministry had set up a committee comprising Expenditure Secretary, RBI Governor and Secretary School Education to examine the selections process.
"After receipt of the report of the Committee, the government has decided to cancel the current selection process of CMDs/EDs of Public Sector Banks (PSBs)," the statement had said.
To fill up these 8 vacancies of CMDs along with those of 14 executive directors, the government decided the selection would be done by a panel necessarily comprising of RBI Governor or his nominee.

Syndicate Bank chief Jain was arrested in August for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of a company.