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Government likely to split PSU bank CMD's post

Last Updated: Monday, August 18, 2014 - 11:02

Zee Media Bureau

New Delhi: Close on the heels of Syndicate Bank Chairman's arrest for alleged graft the government might soon start appointment of executives at state-run banks, as per a newspaper report.

The government might also rejig the hierarchy in PSU banks in order to cut down political interference in its working, the paper further reported.

As per further reports government might split the post of the chairman and managing director. While the MD will have a three-year fixed tenure which could be extended by two more years the Chairman of such banks would be a professional or a reputed person.

It may be recalled that last week, Finance Minister Arun Jaitley had said that government will deal with PSU lenders sternly and is scrutinising recent appointments of bank heads.

"Time has come to be strict with PSU banks. I have urged the Cabinet Secretary and the RBI Governor to examine recent appointments in public sector banks," he had told reporters.

The CBI had recently written to the Finance Ministry alleging "irregularities" in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.

A panel headed by RBI Governor selects PSU bank chiefs. Applications are processed by the Cabinet Secretary and placed before the Appointments Committee of Cabinet (ACC) for its final approval.

State-run banks in which CMDs were appointed recently include Canara Bank, Corporation Bank, Bank of India, IDBI Bank, Allahabad Bank and Central Bank of India.

With PTI Inputs

First Published: Monday, August 18, 2014 - 11:02
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