Govt scraps selection process for PSB chiefs

Move to delay appointments of heads at 8 banks.

By: ENS Economic Bureau | New Delhi | Published:October 28, 2014 2:03 am
The decision comes after a committee set up to look into the process, found irregularities in the followed procedure. The decision comes after a committee set up to look into the process, found irregularities in the followed procedure.

The government on Monday scrapped the ongoing selection process for chiefs of public sector banks (PSBs), a move that is likely to delay appointments of heads at eight banks.

The decision comes after a committee — comprising the expenditure secretary, RBI Governor and secretary school education — set up to look into the process, found irregularities in the followed procedure.

“On the basis of the report … the government has decided to cancel the current selection process of CMDs/EDs of Public Sector Banks (PSBs),” the finance ministry said in a statement.

As a result of the decision a fresh process will begin to appoint eight chairman and managing directors (CMDs) and 14 executive directors (ED) in PSBs including Bank of Baroda, Canara bank, Indian Overseas Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India.

Stating that it will lay down a new selection process, the ministry said, “The government has decided that a fresh process for selection would have to be implemented for filling-up these existing vacancies wherein the Governor, RBI or his nominee of the rank of Deputy Governor should be a part of the selection process.”

Concerns have been raised by employees’ associations over the delay in the appointment of the bank chiefs.

CH Venkatachalan, general secretary of the All India Bank Employees’ Association (AIBEA), who raised concerns over the vacant positions objected to the government’s move and said that they could have gone for additional screening if necessary.

“All chairpersons would be selected from the same set of the people and therefore there is no need of a fresh process. If they wanted to check on integrity they could have done additional screening but going for a fresh process is politicising of the appointments,” said Venkatachalan.

The process of appointment had earlier got delayed due to the general elections. A panel led by the RBI Governor Raghuram Rajan had interviewed 19 executive directors of PSBs for appointments as CMDs.n Move to delay appointments of heads at 8 banks.

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