New system implemented to fill top posts in PSBs: Govt

Government today said the process to select Chairmen and Managing Directors in public sector banks (PSBs) was taking time because a different but open system has been adopted to fill the posts.
Replying to questions in Rajya Sabha, Minister of State for Finance Jayant Sinha said the government has separated the posts of Chairman and MD in PSBs.
He said "right now" there are five chairmen and MDs who are being selected. The PSBs are Bank of Baroda, Canara Bank, Punjab National Bank, IDBI and Bank of India.
"One, which is a very important element in the manner in which we are changing the functioning of PSBs, is changing the way in which we recruit the seniormost people...This a very different process than what was followed in the past.

"And naturally ... Its taking time to fill some of these key and sensitive and vital posts in a way that is very different from the way it was done in the past," he said.
Sinha further said these are very far reaching and broad changes and cannot be done hastily.

"...It is very important that the governance of these banks be done the right way so that you can prevent wilful defaulters and the excessive NPAs that they have in the system right now, which is why while we want to proceed with urgency we also recognise that haste makes waste in this particular case," he said.

The Minister said in absence of Chairman and MDs, senior most Executive Directors have been given charge of the top executives.
He also informed the House that there was no shortage of senior ranked managers in public sector banks and state-owned banks were sufficiently staffed both at senior level as well as lower level.
He said about 25,000 to 30,000 persons are selected each year for officers' posts in banks. The hiring for clerical posts is also in the same range.
About 15 lakh candidate appear in examination for officer level posts each year.
There are 27 public sector banks in the country.

Government, Sinha added has granted managerial autonomy to banks in the matters related to human resource, including recruitment as per their requirements.