In a first for India's PSU banks, candidates from private sector banks have been shortlisted for next week's interviews for the post of CEO and MD at five large banks including PNB, BOB and Canara Bank.
As many as 26 candidates are to appear for the interview on June 15 and 16, sources said. A high level search panel headed by RBI Governor Raghuram Rajan will interview candidates, they said.
Among the 26 candidates, about 7 existing executive directors of the various public sector banks have been shortlisted for the interview.
Besides, executives from private sector banks would appear for the interview. This is the first time when executives from private sector banks would be part of the selection process for top jobs in Public Sector Banks.
The department of financial services had sought applications for the post for MD and CEO in Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank and IDBI Bank for a fixed term of three years. However, the Department did not find adequate number of candidates as per the eligibility criteria. So, it relaxed the norms in April.
While the age limit was increased to 57 years, from 55 years earlier, the mandatory board-level experience for the applicants were reduced to one year from three years previously to invite more experienced talent for heading large public sector banks.
Apart from the banking sector, after the new government assumed power at the Centre last year, the Coal Ministry had invited applications from the private sector for the post of CMD in Coal India. But it got no application from private sector executives.
Besides, vacancy in the Indian Bank has come up due to movement of its MD and CEO as vigilance commissioner. In addition, to this CEO post is vacant in Andhra Bank. In December, the government had appointed Managing Director and CEO in four state-owned banks - Indian Overseas Bank, Oriental Bank of Commerce, United Bank of India and Vijaya Bank.
Last month, MD and CEO of Syndicate Bank was appointed.