... may relax norms for appointment of CEO, MD in 5 PSU banks

The Finance Ministry may relax the eligibility criteria for selection of CEOs and MDs of five PSU banks if applicants in the ongoing selection process fail to pass muster with RBI’s scrutiny.

“We may relax certain eligibility criteria after the applications that we received are scrutinised by RBI,” official sources said. About 40 applications were received by the Department of Financial Services for appointment as Managing Director and CEO in Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank and IDBI Bank for a fixed term of three years.

If RBI is not able to provide us adequate number of shortlisted candidates for the interview then the Ministry may have to invite applications again with somewhat relaxed criteria, sources said. If at all there is relaxation, it could for board level experience or age criteria so that serving executive directors of the public sector banks or more candidates from private sector could be eligible for the vacancies, sources added.

As per convention, for every vacancy a minimum four candidates are interviewed by the government. Of the total aspirants, about three candidates from the PSU sector, mostly from the financial institution, applied for these vacancies. The last date for submission of applications for these posts was March 21 and 40 applications were received. This is the first time when executives from private sector banks would be part of the selection process for top jobs in state-owned banks.