Opening top PSB posts to pvt sector a 'dangerous precedent': Bank unions

The United Forum of Bank Unions (UFBU), representing nine unions of officers and workmen across public-sector banks (PSBs) on Friday strongly opposed the Centre’s recent move to open up top management positions in PSBs, Life Insurance Corporation of India (LIC), and non-life insurance companies to privatesector candidates.

- HARSH KUMAR

Calling it “anattackon the public character of national institutions”, the UFBU demanded immediate withdrawal of the revised consolidated guidelines issued bythe Appointments Committee of the Cabinet.

Some senior bankers have also expressed concern, calling the move a serious threat to the security and integrity of PSBs. “This poses a serious risk to the institutional framework and culture of PSBs. The strength of institutions like SBI lies in the factthat a probationary officer can, through years of service and experience, rise to becomethe chairman of thebank. This tradition exists across all PSBs. Allowing external entrants at the top may disrupt this system, and affect operational decision-makingasthe managing director’s (MD's) position is central to the bank’s functioning,” said a senior public-sector banker on condition of anonymity.