FI top jobs to drop political baggage

NEW DELHI: THE Ministry of Finance is moving to de-politicise the appointment of chief executives of banks and financial institutions. A long-term policy for recruitment to key posts of chief executives of public financial institutions is being formulated in the North Block. To be announced soon, it will take care of all recruitments, post April 2003.
Spearheaded by Dr Vijay Kelkar, advisor to the finance ministry, the new policy will form the basis for all further recruitments to key posts in Indian financial institutions and banks owned by the government, and greatly reduce the scope for the minister in charge of banking to influence appointments.
This move will be part of finance minister Jaswant Singh’s drive to institutionalise recruitment to the key posts which involve transactions in public money. It is also seen as a step to ensure the financial health of the institutions.
The aim of the policy will be to remove any arbitrariness or bias in the appointment process that affects the performance of the institution concerned, and hence its profitability. The interference of politicians in the recruitment process is widely known.
The groundwork for this was done with former finance minister Yashwant Sinha’s decision of making the appointments in financial institutions an independent process.
Even while faculty members from IIM-Ahmedabad were appointed as consultants, there was no positive outcome as political interference continued. In view of the weaknesses in the existing system, the ministry is trying to remove them.
For the intervening period, the finance ministry has decided to accept the recommendations of the last finance minister and his minister of state for the requirements in pending recruitments in PSU banks till March 2003.
Five names have been recommended by a committee constituted in the ministry of finance to fill the slots that are vacant in the financial sector.
The recommended names for executive directors, approved by the finance minister, are as follows: K N Prithiviraj (GM, PNB) for United Bank of India, P S Shethi (GM, Bank of Baroda) for Vijaya Bank, R Balakrishnan (GM, Corporation Bank) for Andhra Bank, K M Shet (GM, Canara Bank) for Syndicate bank and Rohit Desai (GM, BoI) for Indian Overseas Bank. S B Roy, GM, Union Bank of India will be the executive director of Nabard and V Sreedhar, GM, UCO Bank have been chosen as chairman National Housing Bank.
The six GMs are part of the first panel that was shortlisted by the erstwhile MoS for banking and expenditure Balasahib Vikhe Patil. The second list that was drawn up initially has been scrapped.
The ministry has currently asked for the respective GMs’ consent following which the names would be sent to the ACC for its assent.