Govt opposes discontinuation of lateral hiring of bank CMDs
The selection committee comprises of the RBI governor, one deputy governor, secretary of the department of financial services and two external experts.
The department of financial services sought approval of finance minister P Chidambaram, who took charge on August 1, to implement changes in the CMD selection norms, and to appoint three executive directors as CMDs.
Sources said the government will continue with the existing criteria of merit-based selection which gave preference to lateral hiring.
As per the existing norms, a bank executive should have completed at least one year as chairman of a smaller bank and have minimum two years of residual service to head an ‘A’ grade state-run bank.
Three large PSBs will have to appoint CMDs as incumbents Bank of India's Alok K Misra, Bank of Baroda’s MD Mallya and Canara Bank’s S Raman will retire this year. Under former Finance Minister Pranab Mukherjee regime, the selection committee had short-listed three executive directors for elevation to the post of the CMD.
Sources said this short-list may now have to be reviewed. This would brighten prospects of the heads of Indian Bank’s TM Bhasin, Uco Bank’s Arun Kaul and
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