Govt revises selection norms for non-official directors in state-run banks

Under the new norms, applicants to such posts must have a graduate degree with at least 20 years of experience and should be less than 67 years of age.

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Non-official directors would be appointed for a maximum of six years or two terms.

With a view to professionalise the management of public sector banks, the finance ministry on Wednesday announced fresh norms for appointment of non-official directors (NoDs) on the boards of state run lenders, insurance companies and financial institutions.

Under the new norms, applicants to such posts must have a graduate degree with at least 20 years of experience and should be less than 67 years of age.

Apart from retired government officials and academician, eminent personalities with special academic training or practical experience in the fields of agriculture, rural economy, banking, cooperation, economics, business management, human resources, finance, corporate law, risk management, industry and IT can also apply for these posts.

The finance ministry further said that non-official directors would be appointed for a maximum of six years or two terms. The ministry has also created a specialised web portal for applicants.

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“There would be one High Level Search Committee which will go through the available applications and would recommend names to the Government for approval,” said a finance ministry release.

“The GoI has amended the procedure for appointment of NODs with a view to professionalise the Boards of these banks and further provide required skill sets to improve the quality of deliberations on the Boards of these banks leading to efficient management of these banks and further leading to better profitability ratios,” said the release.