Govt opens SBI MD post to private sector for the first time

In a first for Indian banking, private-sector professionals are now eligible to apply for senior leadership positions in public-sector banks (PSBs), including the prestigious Managing Director (MD) role at the State Bank of India (SBI), NDTV Profit reports.

The reform represents a significant change in the selection process for top roles such as MDs, Chief Executive Officers (CEOs), and Whole-Time Directors (WTDs) across public financial institutions. It forms part of a broader initiative to encourage transparency, competition, and merit-based hiring at the highest levels of the banking sector.

According to a communication reviewed by NDTV Profit, the Appointments Committee of the Cabinet (ACC) has approved updated consolidated guidelines for appointing WTDs-including Chairpersons, CEOs, MDs, and Executive Directors (EDs)-in PSBs and state-owned insurance companies.

Under the new rules, private-sector candidates can apply for the SBI MD position if they meet specified eligibility criteria. Applicants must have at least 21 years of professional experience, including a minimum of 15 years in banking, and should have served either two years at the board level of a bank or three years at the highest level below the board.