After the Finance Ministry's move to relax the eligibility criteria for selection of Chief Executive Officers (CEOs) and Managing Directors (MDs) of Public Sector Banks (PSBs), the heads of Regional Rural Banks (RRBs) and Workmen Employee Directors of PSBs are in the race for the top post.
They, however, claim that they fulfill the eligibility criteria to apply for the lucrative post, lying vacant in 3 large PSBs (PNB, Canara Bank and BoB) at present and two more (IDBI and BoI) to become vacant shortly.
"If the Government eases the existing norms for the appointment of CEOs and MDs of the PSBs, then RRBs and workmen directors, no doubt, will be also eligible for post to apply, because they fulfill the eligibility criteria for the positions," a banking source close to the development told The Pioneer.
There are about 5 MDs and CEOs lying vacant in the PSBs such as Punjab National Bank (PNB), Bank of Baroda (BoB), Bank of India (BoI), Canara Bank and IDBI Bank for a fixed term of three years. As per a the new appointment process, cleared by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi, applicants, according to the criteria, should have at least 15 years of experience in mainstream banking, of which at least three years should be served at the board level.
"Candidates should be in the age group of 45-55 years as on the date of advertisement, it said, adding that for the first time executives from private sector banks would be part of the selection process for top jobs in PSBs," said the Appointment panel.
However banking sources said that there may be relaxation of age (from age group of 45-55 to 45-57 years) and reduce the years of serving at board level (from 3 years to 1 year or so). "After the new norms the decision of the screening agency, that is RBI, will be final and candidates duly recommended by the agency will only be called for the interview," added the sources.
As far as workmen director is concerned, they are also eligible for applying the post concerned. "Most of them have worked as director at board level for around 3 years and they also fall under the age norm specified by the Ministry," said a top official of public sector bank, adding that it is the Government prerogative to consider their application for the eligibility.
Technically speaking, heads of RRBs are having the post equivalent to Assistant General Manager (AGM) or Deputy General Manager (DGM) of any public sector bank. When asked about their chance for the consideration on eligibility, the official added, "The Government may look into other parameter while screening the applications of such applicants. We are waiting the new relaxed norms by the ministry."
For instance, N Shankar, an ICWA in Union Bank may have applied for the post as Shankar has already resigned from the Board of Directors of Union Bank of India on March 02. Shankar served as Workmen Employee Director for a second tenure of three years, with effect from January 19, 2012. Shankar is currently serving as special assistant at Union Bank of India, said in a filing to stock exchanges recently.
According a RBI sources, about 40 applications were received by the department of financial services for appointment as MDs and CEOs. The last date for submission of applications for these posts was March 21.
Meanwhile, the Government has to fill up the posts of Executive Directors (EDs) in PSBs like P&SB, Corporation Bank, United Bank of India and Syndicate Bank. Canara Bank's acting MD & CEO, and Andhra Bank CMD are retiring on April 30 which will have to be filled up from among the serving EDs. In case it happened so, two more EDs' vacancies will be created. There are five General Managers already on the panel.