Banking on tenure

Longer terms for PSB chiefs address the talent gap partly

The government’s decision to increase the term of managing directors (MDs) and chief executive officers (CEOs), and also whole-time directors of public-sector banks (PSBs) from five to 10 years, subject to a retirement age of 60 years, is a sensible move that is likely to play some part in retaining talent at a time when they have been haemorrhaging talent to private-sector rivals. The gazette notification does not, however, offer an unreserved extension to PSB chiefs and whole-time directors. It states that the appointment will be for five years initially and terms can be extended for another five, suggesting that