The Finance Ministry of India has recommended to extend the tenure of 3 Chief Executive Officers and 11 Executive Directors working in various public sector banks. The decision is made to ensure the stability and continuity at the banks during the COVID-19 pandemic.
The Department of Personnel and Training (DoPT) received written communication from the Department of Financial Services (DFS), with the recommendation of extending the tenure of chiefs of public sector banks.
The letter recommended the extension of the tenure of Mr. S S Mallikarjuna Rao, Managing Director and Chief Executive Officer at Punjab National Bank, till 31st January 2022. Rao’s term at Punjab National Bank as the CEO & MD was coming to an end on 18th September 2021.
Atul Kumar Goel, Managing Director & Chief Executive Officer at UCO Bank, has been recommended an extension of 2 years after 1st November 2021. Similarly, A S Rajeev, Managing Director and Chief Executive Officer at Bank of Maharashtra, has been recommended an extension of two years after 1st December 2021.
Along with this, Executive Directors of several banks have also been recommended for an extension of 2 years. Ajay K. Khurana and Shanti Lal Jain, Executive Directors of Bank of Baroda, are also likely to get an extension of 2 years.
Sanjay Kumar & Vijay Dube, Executive Directors at Punjab National Bank, Gopal Singh Gusain & Manas Ranjan Biswal, Executive Directors at Union Bank of India, Vikramaditya Singh Khichi, Executive Director at Bank of Baroda, Shenoy Vishwanath Vittal, Executive Director at Indian Bank, and Alok Srivastava, Executive Director at Canara Bank are also recommended for extension till their age of superannuation.
The Department of Financial Services sent the proposal to the Department of Personnel and Training,’ stating that the proposal is approved by the finance minister. The proposal was sent after consultation with the Banks Board Bureau (BBB) and the final call will be taken by the Appointments Committee of Cabinet (ACC).
This decision has come at a time when the government is seeking private sector participation for the top posts in public sector banks.
On 16th June 2021, the BBB released a notice stating, “Banks Board Bureau invites applications from qualified candidates for the post of Managing Director& Chief Executive Officer (MD& CEO) of Punjab National Bank (PNB) on a full-time basis.”
However, the proposal by the Department of Finances to increase the tenure of MDs and CEOs will impact the private sector participation in public banks.
