PSB chiefs may get fixed 3-yr term from this April
As many as nine CMDs of PSBs are slated to retire in 2013-14 in banks including IDBI Bank, Andhra Bank, Bank of Maharashtra, Syndicate Bank, Corporation Bank, Union Bank of India and Central Bank of India. Recently, the government appointed RK Dubey as CMD Canara Bank, SA Panse to head Allahabad Bank and Ashwini Kumar to lead Dena Bank.
Another serving CMD said a fixed tenure of three years would help officials leave a mark by preparing and implementing forward-looking strategies. This is especially important because of the government's focus on expediting financial inclusion, he said.
The Khandelwal committee argued that PSBs are likely to face a management crisis from 2012. “Leadership gaps in PSBs are palpable in as much as that in the next five years, 80% of GMs, 65% of DGMs, 58% of AGMs and 44% of CMs would be retiring,” the committee said. CMDs need fixed tenure for effective succession planning.
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