SBI Opens Its Top Leadership Roles To Private Sector Candidates

The bank has four managing directors. Of these four, one of the MDs’ positions has been opened for private sector candidates. The candidates must be either from the private sector or those engaged in public sector financial institutions. 

Until now only internal candidates have served as chairman and MDs of the bank.

Along with SBI, the move is applicable for other public sector banks (PSBs) as well. 

The position of executive director would also be open for private sector candidates. 

Earlier, Finance Minister Nirmala Sitharaman said that the government banks must be open to talent, including from the private sector to ensure best practices and growth of business.

The Appointments Committee of the Cabinet which issued revised guidelines said that candidates need to have at least 21 years of experience, of which they require a minimum 15 years in banking. In addition to this, candidates applying from the private sector are required to have served a minimum of two years at a bank board level. 

The bank unions have opposed the move. “There is no need to open the top posts to private sector candidates, our own banks have many eligible candidates who are competitive in running them,” CH Venkatachalam, general secretary, All India Bank Employees Association (AIBEA)of the members told The Secretariat. 

The United Forum of Bank Unions (UFBU) has issued a statement in this regard.

“From the United Forum of Bank Unions (UFBU), representing nine trade unions of officers and workmen across all our banks, we wish to convey our unequivocal and strongest protest against the recent executive orders issued by the Appointments Committee of the Cabinet,” it said, adding that ACC guidelines dissolve the public character, accountability framework, and legislative intent underlying the nationalisation of banks and the State Bank of India Act, 1955, "that too without any Parliamentary amendment or consultation,” it underlined.

The exercise of lateral entry in public sector banks has been an ongoing process, with the aim of improving efficiency, administration and governance. 

The Centre has also made it clear that there will be no interference in the functioning of the banks. 

Earlier, the government also separated the posts of chairman and managing director (MD).