In a bid to improve governance, the Centre has separated the posts of Chairman and Managing Director (CMD) in nationalised banks. It has also appointed Managing Directors (MD) for four banks, and they will also be designated as Chief Executive Officer (CEO).

Two Reserve Bank committees, headed by AS Ganguly in 2002 and PJ Nayak in 2014, had recommended separation of the post.

According to the Finance Ministry, henceforth, in public sector banks, other than State Bank of India, the chairman will be a part-time board member who would preside over the board meetings but will not be an executive chairman. The procedure for selection of part-time chairmen would be announced shortly, it added.

The four new MDs and CEOs are P Srinivas (United Bank of India), Animesh Chauhan (Oriental Bank of Commerce), R Koteeswaran (Indian Overseas Bank) and Kishor Kumar Sansi (Vijaya Bank).

The appointments are for three years or till the date of their superannuation, whichever is earlier.

New selection process These banks and four others have been functioning without a CMD. On October 27, the Government scrapped the existing selection process for appointment of CMD and Executive Directors in public sector banks and decided to initiate a new process, based on which the four names were selected.

A Finance Ministry statement said a replacement for Syndicate Bank CMD SK Jain, who was suspended following his arrest in an alleged bribery case, is still under consideration and would be decided shortly.

For three large banks — Bank of Baroda, Punjab National Bank and Canara Bank — the Centre has decided to go for a fresh selection procedure, to be announced soon.

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