The government has decided to finalise a new process for selection of chairmen and managing directors and executive directors of public sector banks (PSBs) for all future vacancies, the finance ministry said in a press release on Monday. The release added that a fresh selection process would have to be implemented for filling up existing vacancies wherein the Reserve Bank of India governor or his nominee of the rank of deputy governor should be a part of the selection process. The government would fill up all these vacancies expeditiously, it said.
The government has constituted a committee consisting of secretary (expenditure), secretary (school education) and the RBI governor to examine the selection process adopted for the selections to the posts of chairman and managing directors and executive directors of PSBs for 2014-15.
Once the government receives the committee’s report, it will cancel the current selection process of CMDs and EDs of state-owned lenders.
As a result, eight posts of CMDs and 14 of EDs would require to be filled up de novo. Currently, Indian Overseas Bank, United Bank of India, Canara Bank, Bank of Baroda and Syndicate Bank are headless.