12 PSU bank honchos retiring,govt plans longer innings for new entrants

With 12 chairmen of state-owned banks leaving office in the next 15 months,the appointment committee might tweak one of the prime eligibility criteria for the post.

With 12 chairmen of state-owned banks leaving office in the next 15 months,the appointment committee might tweak one of the prime eligibility criteria for the post. Instead of appointing an official with residual service of two years (as is the case now),the committee might prefer officials who have three years or more of residual service left.

There is some thought in the direction that executive directors who have three years or more of residual service left should be considered for the job of a chairman and managing director, said an official in the ministry of finance.

The move comes on the back of a few recent appointments where the CMDs who have recently assumed office dont even have one full year left of work. One such case is that of GS Vedi,chairman and managing director of Punjab and Sindh Bank (PSB). Vedi has been a part of PSB since 1969 and was promoted to the post of CMD this year in August. He is due to retire in June next year.

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Another case is that of T Y Prabhu,chairman and managing director,Oriental Bank of Commerce. Prabhu was working as an executive director with Union Bank of India and assumed charge as the CMD of the Oriental Bank of Commerce in August this year. PRabhu,too,will not be able to enjoy his two years of service in the present capacity as he is due to retire in December next year.

One of the main problems is that even if candidates with two years of residual service are selected,a lot of time elapses by the time they assume office. So in this case,it will be better to select candidates who have at least three years of residual service left, added the official. While such a decision is good for a bank,there are,however,several executive directors in the wings who might not get a chance to become CMDs.

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