Govt opens SBI MD, PSU banks ED positions for private sector candidates

Of the four positions of Managing Director in SBI, one position has been opened for private sector candidates and persons working in public sector financial institutions

New Delhi: The government has opened top management positions in public sector banks, including the country’s largest lender State Bank of India (SBI), to private sector candidates.

Of the four positions of Managing Director in SBI, one position has been opened for private sector candidates and persons working in public sector financial institutions. So far, all MD and chairman positions have been filled by internal candidates.

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As per the revised appointment guidelines, one MD position will now be available to the private sector. Similarly, the revised guidelines also permitted private sector candidates to appear for the selection process of executive director (ED) in the public sector banks (PSBs). Besides SBI, there are 11 public sector banks, including Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, and Bank of India.

According to revised guidelines issued by the Appointments Committee of the Cabinet, candidates must have a minimum of 21 years of experience with at least 15 years of banking experience and at least 2 years at the bank board level, as far as private sector candidates are concerned. Candidates eligible under the public sector position would also be eligible to apply for such vacancies, it said.

From the date of coming into force of these guidelines, it said, the first vacancy of MD, SBI, would be treated as open. Subsequent vacancies, arising after filling of the first vacancy, would be filled by eligible candidates holding positions in PSBs, it added.

With regard to EDs in nationalised banks, it said one position in a bank would be open for all the eligible candidates, including private sector candidates. There are four EDs in large nationalised banks, while two positions in small lenders.

For private candidates, it said, the person should have a minimum of 18 years of experience, with 12 years in banking, including 3 years at the highest level below the board level.

Candidates holding the post of Chief Vigilance Officer (CVO) will not be eligible to be considered for appointment to the post.