PSU banks demand easier norms for appointment of EDs

One suggestion is that two years of experience as general manager could be brought down to one year in cases where there is 3 or more years of service left.

By Dheeraj Tiwari, | Updated: Dec 21, 2011, 03.21 AM IST

NEW DELHI: State-run bank have urged the finance ministry to relax the eligibility conditions for the appointment of executive director, or ED, fearing they will not be able to find enough candidates under the current rules.

The state-run banks need to appoint 24 EDs within 3 months. As per the current norms, a candidate eligible for the post of executive director needsto have served two years as general manager and should have three years of service remaining.

“At a time when there is high attrition at the middle management level, giving more chances to young people will also ensure there is no dearth of experienced hands when it comes to selection of CMDs,” said an official with Dena Bank.

One suggestion is that two years of experience as general manager could be brought down to one year in cases where there is 3 or more years of service left. A finance ministry official told ET that the government is already working on a scheme that will allow lateral movement of middle-level bank employees to give them more exposure.

But, the official said there was no immediate dearth of candidates. "As of now, there are 42 candidates eligible to become EDs, so there should not be much concern,” he said.

State-run banks plan to hire more than 2 lakh employees, including officers, clerks and substaff, by March 2013. The country’s largest lender, the State Bank of India, plans to hire 33,050. Of this, 5,400 are vacancies for officers and 25,900 for clerks and the rest for sub-staff.

Last week the government sanctioned the appointment of six additional EDs in the large state-run banks and five in small-sized banks. The finance ministry has already approved of the succession recommended by the Khandelwal committee, which has been set up to look into human resource issues at state banks.

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