Govt halts hiring from private sector for PSB top jobs

The government which only last week announced the appointment of two private bankers as heads of two state-run banks, Canara Bank and  Bank of Baroda, has abruptly abandoned the policy shift, saying it has no plans to pick CEOs and managing directors of state-run banks from private sector professionals.

The minance ministry on Sunday said any hiring of CEOs and managing directors of public sector banks would be from existing talent pool available with the public sector banks and not from outside.

There is, however, some relaxation for select banks, where the government still proposes to fill top vacancies from the larger talent pool outside.

"For five large banks we had different procedure. For remaining banks we are going to hire from the pool of executive directors of the public sector banks itself," reports quoted financial services secretary Hasmukh Adhia as saying.

"The eligibility criteria for the remaining bank vacancies have been approved and that is only for competition within the system. For remaining banks there would be normal procedure of selection from among the pool of executive directors," he said.

Adhia said soon the government will have to find candidates for the CEO and MD posts falling vacant in Indian Bank and Andhra Bank. There would be another vacancy in UCO Bank by the end of this month, he added.

The finance ministry plans to complete the selection process as early as possible, he said, adding the procedure for selection of candidates will start in three months and hope to complete the process within three months.

The government last week appointed P S Jayakumar (53), managing director and CEO of VBHC Value Homes Pvt Ltd and former Citi banker, as head of Bank of Baroda while Rakesh Sharma (57) MD and CEO of private sector lender Laxmi Vilas Bank, was hired to head Canara Bank

Besides, these two banks, the government also appointed MDs and CEOs of Bank of India, IDBI Bank and Punjab National Bank.

These three executive heads were serving officials in other government-owned banks.

M O Rego (deputy managing director of IDBI Bank), Kishore Kharat Piraji (executive director of Union Bank of India), and Usha Ananthasubramanian (CMD of Bhartiya Mahila Bank) are the new MD and CEOs of Bank of India, IDBI Bank and Punjab National Bank, respectively.

The government had earlier decided to separate the post of chairman and managing director by prescribing that in the subsequent vacancies to be filled up the CEO will get the designation of MD and CEO while another person would be appointed as non-executive chairman of PSBs.