Appointment Of ED And CMD

Bank EDs: CVC nod for 15 shortlisted candidates-Hindu Business Line 12.01.2015

New Delhi, January 12:  

The process for the selection of executive directors (EDs) in public sector banks (PSBs) has moved a step forward.

 

The Central Vigilance Commission (CVC) has given vigilance clearance to 15 candidates who could make the cut for the 12 identified posts of EDs in various banks, official sources said.

 

This 15-member list was prepared after the interviews held on December 25, where candidates were scrutinised by three sub-committees.

As many as 34 general managers from various public sector banks appeared for the interview.

 

From 7 banks

The 15 members hailed from seven banks — Bank of India, Oriental Bank of Commerce, Union Bank, Bank of Baroda, Canara Bank, Central Bank of India and Vijaya Bank. After cancelling the selection of 14 EDs made by the previous UPA regime, the Narendra Modi-led government had called for fresh interviews.

 

With the CVC having cleared 15 names, the list has now gone to the Central Bureau of Investigation for clearance, sources said.

 

Once the CBI nod is obtained, the shortlist will go to the Department of Financial Services in the Finance Ministry, which will then forward it to the Department of Personnel and Training for approval from the Appointments Committee of Cabinet.

MY VIEWS ON Appointment of ED and CMD is available in following links

Government of India has decided to change the constitution of selection process but has not strike at the root of corruption?

 Corruption in Appointment of ED and CMD As Also In all Promotion Is Unavoidable

 

Government has not stopped the dirty selection process of promotion going on for a decade and more for internal promotion in these banks.

 

 Corrupt ED And CMD Allowed Bad Debts to BE Concealed and Now Written Off

 

It is the culture of bad promotion and ill-motivated posting which has resulted in current sickness of PS banks.

 

Govt Should Ask IB to Keep survillience ON Officers of CBI and CVC to Know Whether they are taking money to give Clearance for newly selected officers for Post of ED and CMD

 

 

It is the humiliation given to senior officers by promoting juniors based on flattery and bribery which has caused rise in stressed assets to a great extent.

http://importantbankingnews2.blogspot.in/2014/09/cvc-do-not-clear-appointment-of-ed-and.html

The right moves on bank appointments

Ramnath Pradeep

 

 

January 12, 2015:  

Ever since the Narendra Modi government came to power, there has been a turnaround in economic confidence. Now, the government is focusing on improving the operational efficiency of the banking system.

 

It arranged a conclave called Gyan Sangam in Pune, where all indications pointed to splitting or creating independent positions for chairman, managing director and chief executive officer in PSU banks. Opening these positions in Class-A PSU banks to seasoned professionals from private sector banks is also on the cards. This bold and praiseworthy moves comes over 12 years after the RBI-appointed AR Ganguly Committee recommended the separation of the office of chairman and managing director.

 

Recently, the PJ Nayak Committee also recommended separating/creating the positions of chairman, MD and CEO, besides imparting transparency.

 

Though the previous government was also toying with the idea for sometime, it has kept it on the backburner for over a decade. Its approach was to try and control or influence the day-to-day affairs of banks through chosen bureaucrats or agents. The present government seems ready to cede this control, to achieve its development agenda.

 

Autonomy in functioning

The government, instead of looking for ad hoc solutions, has taken a long-term view. It has been agreed that the post of CMD has to be split into non-executive chairman, responsible for board level issues, policy issues and corporate governance, and MD-cum-CEO, responsible for day-to-day operations without interference from any quarter. The New Companies Act has defined the responsibilities of all the three executives — chairman, MD and CEO — whereas neither the Bank Nationalisation Act nor the Banking Regulation Act defined them for the PSU banks. So, the government should take steps to incorporate these definitions in these Acts at the earliest.

 

The finance minister has done well to pick Canara Bank, Punjab National Bank, Bank of Baroda and Bank of India for implementing the RBI recommendation. These banks have sizeable international presence. They cater to the financial needs of more than 70 per cent of the customers in India. Implementing the first phase of Modi’s vision will bring better customer service and enhance competition among finance professionals, not just banks. India will also be able to fulfil its other dream of having 4-5 banks of global presence and scale.

 

Indian banking system faces multiple problems such as rising NPA and capital infusion for meeting Basel-III requirement and HR issues, amongst others. Fears about allowing private sector executives into the portals of PSU operators are unfounded.

India has produced several bankers of international stature such as Raghuram Rajan, Anshu Jain, Vikram Pandit, Ajay Banga, Chanda Kochhar, Shikha Sharma, Naina Lal Kidwai and Meera Sanyal. Banks such as ICICI Bank, HDFC Bank, Axis Bank are managed by people who have made a mark in terms of various performance parameters.

 

Making an impact

Bringing executives from the private sector is a long-term solution. It will help the Indian financial sector, particularly PSBs, in the coming decades. However, it does not mean the public sector faces a dearth of talent. The salary may not be so attractive in PSBs, but professional satisfaction is assured while working with these banks.

 

Once there is clarity on job description, responsibility and accountability, the selection process will be transparent. These initiatives will help India turn into a financial superpower in a few years.