Plan to Hire Private Sector CEOs for PSBs Put on Hold

The government has kept in abeyance its plan to hire chief executives for public-sector banks from the private sector, as it is yet to come up with a clear procedure for the appointment.

The original plan was to widen the search by inviting applications from the private sector for Canara Bank, Punjab National Bank and Bank of Baroda, where the positions of CEO have been vacant for several months. For the first time, the government had indicated at the Gyan Sangam -a two-day conference held in December on the future of public-sector banks -that it would advertise the vacancies.

But the government has recently made the senior-most executive directors at two banks as their CEOs. It named VS Krishna Kumar the managing director and CEO of Canara Bank until he reached superannuation in March 2015, while Gauri Shankar has recently been given the same positions for three months at Punjab National Bank. Sources say the government is set to appoint Ranjan Dhawan, the senior-most executive director of Bank of Baroda, as the lender’s MD and CEO.

The Department of Personnel & Training had previously proposed to engage an HR firm to screen all the applicants, which would then be followed by interviews by the appointment committee, sources said. “However, it appears that the government is not clear about the process of the appointment,“ said a senior bank official, who tracks people movement at PSU banks. “Due to lack of clarity and time, the appointment process is pushed behind and, as a result, the senior-most executive director is given the charge,“ he added.

For years, PSU bank chiefs -designated as chairman and managing director -were chosen from among the executive directors of all state-run banks. However, at the State Bank of India, the chief was selected within the bank by the government while SBI posted its deputy managing directors to head its associate banks.

Source: Economic Times

Date: 23 /2/2015

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