Govt opens senior leadership positions in public banks to private-sector professionals

For the first time, the Government of India has opened senior leadership positions in public sector banks (PSBs) to private-sector professionals, the Appointments Committee of the Cabinet (ACC) said in a notification.

This also included the Managing Director (MD) post at the State Bank of India (SBI).

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The first vacancy for the SBI MD post under these guidelines will be treated as open, allowing private-sector professionals to apply, while subsequent vacancies will initially be reserved for internal PSB candidates. The guidelines also specify procedures for waiting lists, additional charge assignments, and penalty disqualifications.

As per the new guidelines, candidates must have held at least two years at the board level or three years at the highest level below the board.

The revised consolidated guidelines supersede all previous ACC directives on PSB appointments. It allows private-sector candidates with at least 21 years of professional experience, including 15 years in banking, to compete for top roles.

Further, the terms of office, salary, and superannuation remain governed by existing laws, such as the SBI Act, 1955, and the Nationalised Banks (Management and Miscellaneous Provisions) Scheme.

Selection for internal PSB positions like Deputy Managing Directors (DMDs), Executive Directors (EDs), and MD & CEOs with sufficient tenure remains eligible.

Selection will be carried out through the Financial Services Institutions Bureau (FSIB), which may engage HR agencies for preliminary behavioral and competency assessments.