Public sector banks to finally get separate chairman, MD

In line with the recommendations of financial experts, including Reserve Bank of India governor Raghuram Rajan, the government has decided to split the posts of chairman and managing director of public sector banks (PSBs), which currently have a combined CMD.

The finance ministry has appointed chief executive officers of four banks, while confirming that non-executive chairmen would be declared shortly.

The new format would also bring about a change in functions, such as the chairman being made a part-time board member but not an executive chairman.

The appointment of the CEOs would be for a fixed tenure - three years or when the candidate retires, whichever is earlier.

The four banks for which new MDs and CEOs were announced on Wednesday were Oriental Bank of Commerce, Indian Overseas Bank, United Bank of India and Vijaya Bank (whose CMD, V Kannan, retired on Wednesday).

R Koteeswaran, who currently serves as executive director (ED), Bank of India, has been appointed MD & CEO of Indian Overseas Bank. Animesh Chauhan, presently employed as ED, Central Bank of India, will head Oriental Bank of Commerce. Kishore Kumar Sansi, currently ED at Punjab and Sind Bank, will be MD & CEO of Vijaya Bank while P Srinivas, ED at Bank of Baroda, will move to United Bank of India as MD & CEO.

The appointment at Syndicate Bank will soon be announced.