Newly constituted Banks Board Bureau, headed by former DoPT Secretary B P Sharma, will undertake its first major assignment of shortlisting candidates for about 30 top level vacancies in the public sector banks beginning June 13. There are already some vacancies at the managing director (MD) and at the executive director (ED) level and some would be created during course of the current fiscal, sources said. In all, there are places for 12 MDs and 18 EDs who will be appointed during this fiscal, sources said, adding that confidential report of over 60 eligible candidates have been sought form various banks for these vacancies.
Since there are large number of candidates, the interview would continue over five to six days and should be over by June 22 as per the tentative schedule. For a dozen MD level vacancies, there are 20 eligible candidates while for the 18 executive director posts there are 47 in the fray, sources said. Some of the existing MD level vacancies are at banks including Dena Bank, Andhra Bank, Punjab & Sind Bank. As per the convention, Punjab & Sind Bank will get candidates from the Sikh community.
Some of the candidates shortlisted for Delhi-based Punjab & Sind Bank include ITDC MD Ravneet Kaur. Besides, MD level vacancies will be created in Bank of Baroda, Canara Bank, UCO Bank, Indian Bank, Syndicate Bank, Allahabad Bank, Central Bank of India, United Bank of India and Corporation Bank. The executive directors who have completed a year as an ED and have two years remaining would be eligible for the MD and CEO post, a senior bank official said. The cut-off date for applying was April 1, 2018.
Majority of the banks, where top-level vacancies are to be filled, are under Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI). For example, RBI has recently imposed lending and deposit taking restrictions on Dena Bank and Allahabad Bank. RBI asked both these banks, which are already under the PCA mechanism, to restrict expansion of risk weighted average and reduce exposure to un-rated and high-risk advances. As many as 11 banks, out of 21 state-owned banks are under the PCA of the Reserve Bank because of their weak financials.
The 11 banks on the RBI’s watchlist are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra. Together, these banks accounted for Rs 52,311 crore of the Rs 88,139-crore capital infusion plan (through bonds and budgetary support) announced by the government for 2017-18.