Govt eases eligibility criteria for appointment of CMDs

NEW DELHI: Facing shortage of experienced hand, the government has relaxed the criteria for selection of Chairman and Managing Director (CMD) of public sector banks, a decision that would make several executive directors eligible for elevation as CMD.

Under the new criteria, a bank executive director (ED) with a minimum experience of 6 months would also be eligible to become CMDs.

Earlier, an ED had to serve a minimum of one year to become eligible for the bank's top post.

The government has eased the experience clause to 6 months from earlier requirement of at least 12 months, official sources said.

The notification in this regard was issued earlier this month, sources said.

This would enable the government to overcome the dearth of experienced hand for elevation to the position of bank's chief.

The government has already initiated the process for empanelment of CMDs for the current fiscal. There would be 8 vacancies during the fiscal.

The first vacancy would come up on May 31 when the Central Bank India Chairman and Managing Director S Sridhar is scheduled to retire.

It is expected that the list of about 8 new CMDs would be out soon who would subsequently starting taking charge as and when the incumbent of the particular bank retires during the course of the year.

On similar lines, the government had announced names of 8 CMDs in September last year.