Business

‘PSBs must have ₹10 lakh crore business to appoint CGMs’

The Finance Ministry has decided to fix a cut-off mark in terms of total business of public sector banks (PSBs) to create the position of chief general managers (CGMs).

Last week, Finance Minister Nirmala Sitharaman had said PSBs will now have the position of CGM which was thus far available only to the State Bank of India.

In a communication to bank chiefs, the government said PSBs having a total business of ₹10 lakh crore will be eligible to have CGM posts in Scale VIII. As a result, three sets of merger bound banks — of the four sets announced by the Finance Minister — will be eligible for CGMs.

Watch | Merger of public sector banks
 

Post merger, the total business of PNB-OBC-UBI pack will be close to ₹18 lakh crore, the Canara and Syndicate combine, over ₹15 lakh crore and Union Bank-Corporation Bank-Andhra Bank, ₹14.6 lakh crore. Indian Bank and Allahabad Bank combine had a total business of ₹8.08 lakh crore as on March 31, 2019. A bank can appoint a maximum of one CGM for four general managers (GMs), the Ministry said.

Candidates with two years of experience as general managers will be eligible to become CGM, the Ministry said in a communication, adding 50% relaxation would be possible if the board approves the proposal. Eligible candidates must have two years of residual service, it said. “The process of promotion to the post of CGM may be on the lines of the extant process for promotion to the post of GMs in nationalised banks, which is done by a selection committee comprising MD & CEO, government nominee director, RBI nominee director and two outside experts,” the communication said.

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Printable version | Nov 28, 2020 9:53:27 PM | https://www.thehindu.com/business/psbs-must-have-10-lakh-crore-business-to-appoint-cgms/article29334705.ece

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