13 candidates in fray for PNB top job; FSIB may hold interviews next month

Among the contenders are two executive directors (EDs) from Bank of Baroda, one ED each from Union Bank of India, Indian Overseas Bank, and Canara Bank, and several deputy MDs from SBI

At least 13 candidates are in the race for the position of managing director and chief executive officer (MD & CEO) of Punjab National Bank (PNB), the second-largest public sector bank (PSB), according to multiple sources familiar with the matter.

“Among the candidates, some are executive directors (EDs) and managing directors in major PSBs. Financial Services Institutions Bureau (FSIB) will conduct the interviews next month,” said a source.
 

The current MD & CEO of PNB, Atul Kumar Goel, is set to complete his tenure on December 31, 2024. The FSIB issued a notification on August 1, 2024, inviting applications for the position. The deadline for submitting online applications was August 29.

According to sources, among the contenders are two EDs from Bank of Baroda, as many EDs from PNB, one ED each from Union Bank of India, Indian Overseas Bank and Canara Bank, several deputy managing directors (DMDs) from State Bank of India (SBI), and one senior executive from UCO Bank. An email query sent to the finance ministry and FSIB remained unanswered till the time of going to the press.
 

FSIB, the head-hunter for directors of state-owned banks and financial institutions, sends its recommendation to the Department of Financial Services in the finance ministry, which then forwards the same to the Appointments Committee of the Cabinet (ACC) chaired by Prime Minister Narendra Modi.  After the ACC clears the appointment, the Department of Personnel & Training (DoPT) notifies the name of the successful candidate.
 

The tenure for the post of PNB MD & CEO is three years, which may be extended based on performance, subject to the normal age of superannuation of 60 years and the provisions of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 & 1980.
 

The post carries a pay scale of Rs 2,05,400-Rs 2,24,400, plus allowances as admissible to the chief executive of PSBs from time to time, according to the FSIB notification. Among other requirements, applicants should be in the age group of 45-57 years as of August 1, 2024. “The applicant should have at least 15 years of mainstream banking experience, of which at least one year should be at the Board level as of August 1, 2024,” the FSIB notification added.

PNB reported a net profit of Rs 3,252 crore for the first quarter of the current financial year (Q1FY25), a staggering 159 per cent increase compared to the Rs 1,255 crore reported in the year-ago period. The bank’s Net Interest Income (NII) increased to Rs 10,476 crore in Q1FY25 from Rs 9,504 crore in Q1FY24, reflecting a 10.23 per cent growth year-on-year. Several major PSB appointments took place this year, including the appointment of Challa Sreenivasulu Setty as the chairman and Rana Ashutosh Kumar Singh as MD of SBI in August 2024. In April, Nidhu Saxena joined as MD & CEO of Bank of Maharashtra, replacing AS Rajeev upon his selection as vigilance commissioner in the Central Vigilance Commission.
 

In June, the FSIB recommended the elevation of five chief general managers (CGMs) to the post of ED in various banks. The FSIB interviewed 57 candidates between June 13 and 17 for recommending suitable names for EDs in PSBs.