In a departure from the past, the government on Wednesday split the post of Chairman and Managing Director for PSU banks and named MD-and-CEOs of four banks including United Bank and Oriental Bank of Commerce.
For the first time, PSU banks will have a non-Executive Chairman, giving operational responsibility to Managing Director and Chief Executive Officer (CEO).
"The procedure for selection of part-time Chairman would be announced shortly," said a Finance Ministry statement.
While R Koteeswaran, Executive Director, Bank of India has been appointed as MD and CEO of Indian Overseas Bank (IOB), Animesh Chauhan, ED (BOI), will head Oriental Bank of Commerce (OBC).
Kishore Kumar Sansi, who is currently ED (Punjab and Sind Bank) will be the new MD and CEO of Vijaya Bank, while P Srinivas moves from Bank of Baroda (BoB) to United Bank of India as MD and CEO.
The appointments will be for three years or till the date of superannuation, which ever is earlier, the statement said.
The ministry, however, said the current structure at country's largest lender State Bank of India which is headed by a Chairman and assisted by several Managing Directors, will continue.
The government did not name a replacement for Syndicate Bank CMD S K Jain , who was suspended following his arrest in an alleged graft case.
"The appointment in one more bank i.e. Syndicate Bank is still under consideration of the government and it would be decided very shortly," the statement said.
After apparently not finding suitable candidates, the government now wants to widen the search for three large banks-BoB, Punjab National Bank and Canara Bank-by seeking talent from private sector.
"For three 'A' Category Large Banks, i.e. Bank of Baroda, Punjab National Bank and Canara Bank, the Government has decided to go for a fresh selection procedure with a view to widen the search of candidates. The procedure for this would be announced shortly," the statement said.
Finance Ministry said, henceforth, at PSBs other than SBI, the Chairman will be a part time Board Member who would preside over the Board Meetings and will not be an Executive Chairman.
"In a significant departure from the past practice, the government of India has decided to now separate the post of Chairman and MD & CEO," the statement added.