Panel headed by RBI Governor shortlists 11 for PSU banks MD post

As many as 11 candidates have been shortlisted by a panel headed by RBI Governor Raghuram Rajan for the post of CEO and MD of five large public sector banks, including PNB, BoB and Canara Bank.

It is expected that the Cabinet headed by Prime Minister Narendra Modi may finalise names of five successful candidates in a month or so, after requisite procedures are fulfilled, sources said.

These shortlisted names have been sent to the finance ministry and would be subsequently forwarded to the Appointments Committee of the Cabinet (ACC) after vigilance and other necessary clearances.

All the shortlisted candidates are from the public sector banks even though candidates from private sector banks were also called for interviews held last week.

As many as 26 candidates, including executives from private sector banks, appeared for the interview.

The shortlisted candidates include one executive director of PNB, one executive director of Bank of Baroda, one DMD of IDBI Bank and one CMD of a public sector bank.

This was the first time when executives from private sector banks were part of the selection process for the top jobs in public sector banks.

The department of financial services had sought applications for the post of MD and CEO in Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank and IDBI Bank for a fixed term of three years.

However as the Department did not find adequate number of candidates as per the eligibility criteria, it relaxed the norms in April.

While the age limit was increased from 55 to 57 years, the mandatory board-level experience for the applicants was reduced to one year from three years to invite more experienced talent for heading large public sector banks.

Apart from the banking sector, after the new government assumed power at the Centre last year, the Coal Ministry had invited applications from the private sector for the post of CMD in Coal India. But it received no application from private sector executives.

Vacancy in the Indian Bank has come up due to movement of its MD and CEO as vigilance commissioner. In addition the CEO post is also vacant in the Andhra Bank.

In December, the government had appointed Managing Director and CEO in four state-owned banks -- Indian Overseas Bank, Oriental Bank of Commerce, United Bank of India and Vijaya Bank. Last month, MD and CEO of Syndicate Bank was appointed.