Leadership positions: Public sector banks should focus on grooming leaders

The government's plan to open senior roles in public-sector banks to private executives aims to boost efficiency but may clash with institutional values and pay disparities

In principle, the government’s decision to open up senior positions in public-sector banks to candidates in the private sector can be viewed as a creative way of injecting management dynamism and competitiveness into a sector that accounts for a little over half the bank loans in the Indian system. The proposal can be seen as part of a trend that began some years ago with the lateral entry of non-bureaucrats at senior levels in the civil service to bring in sector expertise to specific ministries. This policy has largely been underwhelming for a number of reasons, including the