Government Splits Chairman and MD Posts in PSBs

  • As part of plans to reform the banking sector, the government on0 31.12.2014 announced splitting the post of Chairman and Managing Director into two for the public sector banks.
  • The government has also appointed managing director and chief executive officers (MD & CEO) for four public sector banks.
  • While R. Koteeswaran has been appointed as MD & CEO of Indian Overseas Bank, Animesh Chauhan will head Oriental Bank of Commerce.
  • Both Mr. Koteeswaran and Mr. Chauhan presently are Executive Directors at Bank of India.
  • Besides, Kishore Kumar Sansi, presently serving as the Executive Director, Punjab and Sind Bank, has been appointed as MD and CEO of Vijaya Bank, and P. Srinivas, who is an Executive Director at Bank of Baroda, will move to United Bank of India as the MD & CEO.
  • The appointments, based on the recommendations of the Appointments Board chaired by the Reserve Bank of India Governor, are for a period of three years or till the date of superannuation, whichever is earlier
  • “In a significant departure from the past practice, the Government of India has decided to now separate the post of Chairman and MD & CEO
  • In the new appointments of public sector banks (PSBs), other than State Bank of India, the Chairman will be a part time Board Member, who would preside over the Board Meetings and will not be an Executive Chairman.
  • In PSBs, so far the top executive was designated as CMD, with the exception of the largest lender State Bank of India, where the top position is commanded by the Chairman and there are four Managing Directors with clearly defined executive roles under them.
  • For three ‘A’ category large banks, i.e. Bank of Baroda, Punjab National Bank and Canara Bank, the Government has decided to go for a fresh selection procedure with a view to widen the search of candidates.
  • The procedure for this would be announced shortly