New norms for top jobs in govt banks

NEW DELHI: Amid controversies over financial sector appointments , the government has issued revised norms for top jobs in public sector banks. While the norms for two-year residual service have been retained for appointment of bank chiefs, the government has decided to make an exemption only in case of a shortage of candidates . In such a scenario, the selection committee can look at candidates who have been executive directors for at least a year and have one year and nine months for retirement . The condition of one-year of service completed can also be halved but in both cases, an approval from the finance minister would be required, the guidelines issued last month said.  The move came as the government was facing criticism over selecting candidates who had less than two years to go for retirement. The norms also stipulate that only after a bank chief completes two years in a bank and has at least two years to go for retirement would he or she be considered for transfer to a larger bank or financial institution . In case of shortage, a three-month relaxation would be provided.  The guidelines said the selection committee should look at a pool of 15 candidates if it had to select 10 chairmen and if fewer candidates were left, then the norms could be relaxed. The other change that has been brought about is to widen the pool of applicants to include deputy managing directors of IDBI Bank and other financial institutions as also managing directors of State Bank of India associates, provided that were hired in the subsidiaries.  Further, from now on, the selection would only be valid for a financial year. If a candidate who has been selected to be appointed executive director or CMD of a public sector bank is not placed with a bank by March 31, he would have to go through the process once again, provided he or she is eligible. The cut-off date for determining eligibility has been fixed as April 1. In case of executive directors, the selection committee has been asked to keep the pool of candidates confined to general managers of nationalized banks and chief general managers of associate banks. The guidelines approved by the Appointments Committee of the Cabinet (ACC) has said that the subcommittee of the appointment board will consist of RBI deputy governor, secretary financial services and three external experts who will interact with the shortlisted candidates. The panel prepared by them will then be sent to ACC for approval. The guidelines have also provided the system for grading candidates.