Govt frames rules for selection of MDs, CEOs of small and medium size state banks

The government has approved a new set of rules for selection of managing directors and chief executive officers in state-run banks other than five large public sector banks.

The Appointments Committee of Cabinet (ACC) today approved the guidelines for selection of managing directors (MDs) and CEOs in state-run banks (PSBs) other than five large public sector banks.

Under the new rules, executive directors of nationalised banks, deputy managing directors of IDBI Bank and MDs of associate banks of SBI who have risen from the Associate Bank Services, with one year of service as executive director (ED) / DMD / MD and who have two years remaining service are eligible to consideration as MD and CEO of these  PSBs.

The selection will be made by the Appointments Board as per the existing methodology of interaction of the candidates with three panels of the sub-committee of the Appointments Board.

The candidates will be rated out of 100 marks with 50 marks to be awarded for Annual Performance Appraisal Reports (APARs) of five years and 50 marks assigned on the basis of performance during interaction with the sub-committee.

Guidelines have also been prescribed for eligibility criteria for the post of executive directors of nationalised banks. General managers of nationalised banks and chief general managers (CGMs) of associate banks of SBI who have risen from the Associate Banks Service, and who have completed two years of service are eligible for consideration for the post of executive director.

The selection process will be initiated next month.