http://www.business-standard.com/india/news/bank-chief-selection-norms-may-change/482774/
The norms for selecting public sector banks’ chiefs are likely to be tweaked again. The finance ministry has proposed to remove from the guidelines a clause on the lateral movement of small and mid-sized banks’ heads to large banks. If the proposal goes through, the executive director of a large bank will be preferred over the chairman and managing director of a small bank to fill a top vacancy in an ‘A’ category bank.
The norms for selecting public sector banks’ chiefs are likely to be tweaked again. The finance ministry has proposed to remove from the guidelines a clause on the lateral movement of small and mid-sized banks’ heads to large banks. If the proposal goes through, the executive director of a large bank will be preferred over the chairman and managing director of a small bank to fill a top vacancy in an ‘A’ category bank.
The ministry has sought the Reserve Bank of India’s views on the issue. The proposals were sent to the central bank after securing the approval of the then finance minister, Pranab Mukherjee. Now that P Chidambaram has become the finance minister, the department of financial services would have to seek his approval.
The ministry has also proposed a fixed tenure for bank CMDs to provide stability. It is of the view a fixed tenure would give CMDs enough scope to strategise and raise their level of commitment and accountability.
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