The government has allowed senior officials of State Bank of India, the country’s largest bank, to compete for the top posts of public sector banks, a move that could lead to protests among the officials in other public sector banks. Senior officials of other PSU banks are not considered for the top posts in SBI.
Though, the government had earlier appointed managing directors of SBI as CMDs of the public sector banks, this is for the first time that senior officials of SBI have been called for interviews to select MD & CEO of PSBs. Three candidates, each holding the rank of chief general manager (CGMs), from SBI appeared for the interview of MD and CEO positions of five large PSBs which was concluded in Mumbai recently.
They include Pallav Mohapatra (head, Delhi circle of SBI), B Ramesh Babu (currently posted at corporate office of SBI and looks after associates and subsidiaries) and P Prakash Rao (head, Chennai circle). Babu’s position is likely to be taken over by Neeraj Vyas (a CGM who looks after new business at corporate office of SBI) shortly. Babu is waiting for his new assignment at SBI.
Earlier, the government’s move to include the senior officials of the SBI for the selection of the top posts at PSU banks had faced opposition from the PSU banks who had demanded that they should be also be given same opportunities for top SBI posts. The last time an SBI official was brought in as a PSU bank head was when managing director Yogesh Agarwal was selected as IDBI chairman and MD in 2007.
SBI top posts like chairman and MDs are always appointed by the government from the internal candidates of the bank. PSB officials had taken a stand that adding SBI officials will raise competition as they are always considered as good candidates. The government had allowed executives from private sector banks to appear for the interview of MD posts in PSU banks.
Meanwhile, the ministry has clarified that no decision has been taken on the interview that was concluded for selecting the five chiefs of PSBs. It may be mentioned that the process of selection is kept confidential and, therefore, the result can only be known after the approval of the Appointments Committee of Cabinet (ACC), said a ministry official.