Govt approves guidelines for hiring PSB MD and CEOs

The government issued guidelines for selection of managing directors and chief executive officers in public sector banks, other than five large public sector banks.

“The selection will be made by Appointments Board as per the existing methodology,” the Finance Ministry said, but was silent on private sector executives being part of the selection process of top management in the PSBs. “Executive Directors of nationalised banks, DMDs of IDBI Bank and MDs of associate banks of SBI who have risen from the associate bank services, with one year of service as ED/DMD/MD, and who have two years remaining service are eligible for consideration as MD and CEO,” it said.

The selection will be made by the Appointments Board as per the existing methodology of interaction of the candidates with three panels of the Sub-committee of the Appointments Board.