FinMin relaxes norms for top jobs in govt banks
As per new guidelines, candidate needs to complete one year as executive director to become eligible for chairman and managing direct--------Business Standard
The finance ministry has relaxed the norms for selection of chairman and managing director in public sector banks which will now allow executive directors who were appointed merely couple of months back to appear in the interviews.
Interestingly, the government has decided to interview the candidates as early as this week for vacancies that will arise not before August 2014 – after the general elections.
According to norms, candidate needs to complete one year as executive director to become eligible for chairman and managing director. However, the criteria for residual service of two years of a candidate have not been tweaked.
The finance ministry has also seems to have kept the communication made by the department of personnel and training (DoPT) conveying the observations and directions of the Appointment Committee of the Cabinet regarding appointment of top jobs in government banks and financial institutions – in abeyance and proceeded with the selection process.
Among others things, suggestion was made to revisit the requirement of residual service and introduction of fixed tenure in public sector banks.
The concept of fixed tenure has been introduced in State Bank of India (SBI) by giving the new chairperson fixed tenure. Arundhati Bhattacharya, who was appointment as SBI’s chairperson earlier this month, was given a fixed tenure of three year.
The department of financial services were asked to examine if the same system could be extended to all public sector banks.
The finance ministry’s decision to relax the norms and conduct interviews early is also snowballing into a political controversy with a Shiv Sena Member of Parliament and a member of the standing committee of finance Chandrakant Khaire, writing to the finance ministry highlighting hastily selection process of CMDs in public sector banks before the finalization of the ACC guidelines.
While the government has decided to interview the candidates now, but clearance from the central vigilance commission (CVC) could not be received at this stage as such clearances are only received couple of months prior to the appointment.
A selection committee will interview 19 executive directors of various public sector banks for six positions that will fall vacant in the next financial year 2014-15. In the present financial year, chairman of four public sector banks will retire.
The government is yet to fill up vacancies in two public sector banks – Andhra Bank and Bank of Maharashtra where the chairman had retired in the last couple of months.
The selection committee is headed by Reserve Bank of India (RBI) governor Raghuram Rajan and includes officials from finance ministry and academic world. According to banking industry sources, the new RBI governor is likely to break the tradition of sending his nominee (which is a deputy governor) and would be himself present during the interviews and conduct them.
The interviews will be conducted at State Bank of India head office in Mumbai, and not in New Delhi as earlier practiced.
Highlights
Fin Min to interview EDs this week for CMD vacancies arising only after August 2014
CMDs of six public sector banks to retire in 2014-15
This may be the first time RBI governor to conduct the interviews
Unlike SBI, no fixed tenure for chairman in public sector banks
Appointment process in govt banks may turn into a political slugfest
Interestingly, the government has decided to interview the candidates as early as this week for vacancies that will arise not before August 2014 – after the general elections.
According to norms, candidate needs to complete one year as executive director to become eligible for chairman and managing director. However, the criteria for residual service of two years of a candidate have not been tweaked.
The finance ministry has also seems to have kept the communication made by the department of personnel and training (DoPT) conveying the observations and directions of the Appointment Committee of the Cabinet regarding appointment of top jobs in government banks and financial institutions – in abeyance and proceeded with the selection process.
Among others things, suggestion was made to revisit the requirement of residual service and introduction of fixed tenure in public sector banks.
The concept of fixed tenure has been introduced in State Bank of India (SBI) by giving the new chairperson fixed tenure. Arundhati Bhattacharya, who was appointment as SBI’s chairperson earlier this month, was given a fixed tenure of three year.
The department of financial services were asked to examine if the same system could be extended to all public sector banks.
The finance ministry’s decision to relax the norms and conduct interviews early is also snowballing into a political controversy with a Shiv Sena Member of Parliament and a member of the standing committee of finance Chandrakant Khaire, writing to the finance ministry highlighting hastily selection process of CMDs in public sector banks before the finalization of the ACC guidelines.
While the government has decided to interview the candidates now, but clearance from the central vigilance commission (CVC) could not be received at this stage as such clearances are only received couple of months prior to the appointment.
A selection committee will interview 19 executive directors of various public sector banks for six positions that will fall vacant in the next financial year 2014-15. In the present financial year, chairman of four public sector banks will retire.
The government is yet to fill up vacancies in two public sector banks – Andhra Bank and Bank of Maharashtra where the chairman had retired in the last couple of months.
The selection committee is headed by Reserve Bank of India (RBI) governor Raghuram Rajan and includes officials from finance ministry and academic world. According to banking industry sources, the new RBI governor is likely to break the tradition of sending his nominee (which is a deputy governor) and would be himself present during the interviews and conduct them.
The interviews will be conducted at State Bank of India head office in Mumbai, and not in New Delhi as earlier practiced.
Highlights
Fin Min to interview EDs this week for CMD vacancies arising only after August 2014
CMDs of six public sector banks to retire in 2014-15
This may be the first time RBI governor to conduct the interviews
Unlike SBI, no fixed tenure for chairman in public sector banks
Appointment process in govt banks may turn into a political slugfest
http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html
http://dkjain4970901092007.blogspot.in/2013/09/see-how-top-executives-get-promotion-in.html
http://dkjain4970901092007.blogspot.in/2013/06/misuse-of-human-resource-in-bank.html
Finmin rushes with bank appointments-ET-28.10.2013
NEW DELHI: The finance ministry is showing unprecedented speed in selecting new bank chiefs for the next financial year, although the first vacancy does not arise until August 2014.
While it is unclear what has prompted the rush to conduct interviews, sources suggested that the ministry is keen to finalize the appointments before the next general elections. Bankers, however, fear that the exercise may go waste if the next government decides to review the decisions of UPA-II. The interviews are technically irrelevant as the Central Vigilance Commission has in the past frowned upon the idea of giving a blanket clearance several months in advance. But, that is not the only reason for controversy.
What has raised eyebrows in banking circles is the unusual cut-off date — August 6. Typically, the date is either the last or the first day of a month. Of those in the fray, only eight would have been in contention if the government had not decided to rework the appointment criteria.
Under the existing policy only those with at least two years to go for retirement are eligible to be interviewed.
If that wasn't enough there is the additional complication of P Pradeep Kumar being the sole candidate to be interviewed for the post of State Bank of India managing director, a post that is vacant after Arundhati Bhattacharya was appointed chairman. In case of the other public sector banks, 19 executive directors have been called for interview by the selection committee headed by RBI governor Raghuram Rajan for over half-a-dozen bank appointments.
On top of the list is PNB executive director Usha Ananthasubramaniam, who is widely tipped to take over as the first chairman of Bharatiya Mahila Bank, that will start operations next month. Among the jobs that are up for grabs as those of chairman and managing director of Canara Bank and Bank of Baroda, Indian Overseas Bank, Oriental Bank of Commerce, Vijaya Bank and UBI. PNB CMD K R Kamath's term is also due to end in October 2014 but he can get one more year. The first two vacancies, at BoB and IOB, arise the chairmen retire on July 31.
http://timesofindia.indiatimes.com/business/india-business/Finmin-rushes-with-bank-appointments/articleshow/24791614.cms
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