Govt opens role of SBI MD to private sector

The government has approved the opening up of the role of Managing Director in State Bank of India for the first time to the private sector. In a notification, the Ministry of Finance stated that one position of the MD will be open to the private sector for candidates with at least 21 years of experience. 

The notification said that the candidate must have at least 15 years of banking experience with:

• At least 2 years at the bank board level or
• At least 3 years at the highest level below bank board level 

It said that candidates eligible under private sector position shall also be eligible under open position. However, for candidates from the private sector, clearances from IB and consultation with the RBI would be required before submission of proposal to the Appointments Committee of the Cabinet (ACC). 

The government earmarked three other MD roles only for the public sector to be filled from the internal candidates. The required eligibility criteria is as under: 

• Deputy Managing Directors (DMDs) of the State Bank of India (SBI) with at least two-years of service as DMD
• The EDs of nationalised banks with at least two years of service as ED
• MD & CEO of a nationalised bank with at least two years as MD & CEO in the present posting and has a residual service of two years (treating 60 years as the date of superannuation)
• Candidates holding the post of Chief 'Vigilance Officer (CVO) shall not be eligible to be considered for appointment to the post

For public sector candidates, clearance from the Central Vigilance Commission and consultation with the RBI would be required.

The notification stated that the Financial Services Institutions Bureau (FSIB) may hire an HR agency for carrying out the behavior and competency assessment of the candidates. The agency would be confined to doing only preliminary assessment and won't be involved in shortlisting of candidates.

The candidates would be marked out of 100 in their interaction with the FSIB.