PSB chiefs may get fixed 3-yr term from this April
At present, most CMDs serve for one to two years as their appointments typically come closer to their superannuation date.
A CMD’s appointment is currently linked to the date of superannuation or five years, whichever is earlier. This weakness was highlighted by a committee on human resources issues of public sector banks headed by former Bank of Baroda CMD AK Khandelwal, which submitted its report in June 2010.
Public sector bank officials retire at 60. The committee pointed out the need for giving a fixed tenure of four to five years to CMDs in order to help them plan on long-term strategies and prepare their organisations for the future. State-owned lenders are dominant players in the banking sector and 26 public sector banks account for nearly 70% of the banking credit in the country.
A CMD at a public sector bank wishing not to be quoted, said: “Unless the CMD is fully aware of a bank's culture and its strengths and weaknesses, it is impossible to implement any strategy within one or two years — the term most chiefs serve right now. In an ideal situation, CMDs should have
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