Appointment of 8 PSU bank heads expected by Nov-end

Written by fe Bureau | New Delhi | Updated: Nov 1 2014, 06:50am hrs
The finance ministry said on Friday that the government will, by November-end, appoint chairman and managing directors of eight Public Sector Banks (PSB), where it had scrapped selections made by the UPA government.

The ministry also said it will soon take to the union cabinet level a proposal for a R10,000 crore fund for recapitalisation of public sector banks (PSBs) in addition to the R11,200 crore announced in the Budget 2014-15 to help them meet global capital adequacy or Basel III norms. Besides, the ministry said the government will from next fiscal give more autonomy to PSBs in selecting statutory auditors.

Addressing mediapersons, Department of financial services secretary GS Sandhu said panel led by RBI Governor Raghuram Rajan, and comprising Sandhu himself alongwith four external experts will on November 13 and 14 conduct interviews of eligible candidates for the post of CMDs of eight PSBs. He added that the aim is to hand over appointment letters to the selected candidates by November-end.

Sandhu said before the final decision is taken, each of the eligible candidates will have to appear before three sub-committees comprising two members each from a panel of six members (including DFS secretary, RBI deputy governor, and four experts). They will be assessed including on the basis of their performance in the last 10 years, Sandhu said.