Finmin Targets Private Bank Execs for PSU Bank Top Jobs

Jul 30 2015 : The Economic Times (Kolkata)

Finmin Targets Private Bank Execs for PSU Bank Top Jobs

Dheeraj tiwari

New Delhi:





Ministry seeks approval for appointment of top bosses in 5 state-run banks from private sector; chiefs have been chosen for BoB & Canara Bank

The government is set to appoint executives from the private sector to head two of In dia's public sector banks (PSB) including one of the biggest, the Bank of Baroda, initiating a ma jor reform of the state-run part of the banking sector. In all, the fi nance ministry has sought ap proval for the appointment of the heads of five PSBs.

P Jayakumar of Value and Bud get Housing Corporation is likely to head the country's second big gest state run bank, the bank of Baroda (BoB), while Rakesh Sharma of Laxmi Vilas Bank could head Canara Bank.

Usha Ananthasubramanian, who heads the Bhartiya Mahila Bank, will move to the Punjab National Bank as MD and CEO. Kishore Piraji Kharat, an executive director with the Union Bank of India, will head IDBI Bank. MO Rego, deputy managing director at IDBI Bank, will move to Bank of India.

“Approvals have been sought for the candidature of Rakesh Sharma, PS Jayakumar, Usha Ananthasubramanian, Kishore Piraji Kharat and MO Rego,“ said a senior official with the department of personnel and training (DoPT).

“In case of private sector candidates, clearances are being sought from all agencies concerned.For bankers from PSBs, the usual process of clearance from central vigilance commission (CVC) will apply,“ the official added.

Last month, the government had appointed Sriram Kalyanaraman, director -business development at Equifax Credit Information Services, as the next housing finance sector regulator, marking the start of its efforts to induct professionals from the pri vate sector to head state-run financial institutions. Kalyanaraman has taken charge as managing director and CEO of National Housing Bank for five years.

The government had received around 40 applications for the posts of managing director and chief executive officers of five PSBs.

All candidates had to undergo a psychometric test to ascertain their suitability for the job.

Earlier this year, the government had approved new norms for selection of MD and CEO in five PSBs, paving the way for appointment of private sector candidates on flexible salary packages. In April, the government re laxed eligibility criteria with regard to age and experience of applicants. While the age limit has been increased to 57 years from 55 years earlier, the mandatory board-level experience for the applicants has been reduced to one year from three years.

The three-stage appointment process included screening and shortlisting of candidates based on experience and eligibility conditions. In 2014, a committee was set up to examine the selection process to the posts of CMDs and executive directors of public sector banks for 2014-15.

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