Top jobs at PSBs: Pride and prejudice

Opening top positions at public-sector banks for private candidates is a welcome move. Delinking their salary from the IAS is the next logical step

- TAMAL BANDYOPADHYAY

In April 2015, the Department of Financial Services (DFS), Ministry of Finance, invited applications for the post of managing director and chief operating officer (MD & CEO) for five large public-sector banks (PSBS): Bank of Baroda, Bank of India, Canara Bank, IDBI Bank Ltd, and Punjab National Bank.

The eligibility criteria included "ability, integrity and standing with knowledge and experience in banking", "proven management, leadership and innovative skills to build and inspire team" and "experience in institutional development in banking sector".

The candidates, in the 45 to 57 age group, needed to have at least 15 years of banking experience with a minimum one-year of exposure to the board. They were offered a three-year tenure, subject to "normal age of superannuation of 60 years".

This is the first instance of the finance ministry opening the door for the top jobs in PSBS to the private sector.

On August 24, 2014, the names of the successful candidates were announced after a three-stage screening and a series of final interviews by three different panels. Two of them were picked up from the private sector: PS Jayakumar for Bank of Baroda, and Rakesh Sharma for Canara Bank. Jayakumar had worked at Citibank NA and also served as MD & CEO of VBHC Value Home Pvt Ltd.

Sharma, originally from the State Bank of India (SBI), had served as CEO & MD of the erstwhile Lakshmi Vilas Bank Ltd before taking up this assignment.

Sharma joined Canara Bank on September 11, 2015 and called it a day on July 31, 2018. Jayakumar joined Bank of Baroda on October 13, 2015.

His three-year term was extended by another year, till October 12, 2019.