Govt opens up SBI MD position to pvt sector

In a major overhaul of the way leadership is chosen at India's public financial institutions, the government has - for the first time - opened up one managing director (MD) position at State Bank of India (SBI) to private-sector bankers.

- HARSH KUMAR, AATHIRA VARIER & ANUPREKSHA JAIN

It has also empowered the Financial Services Institutions Bureau (FSIB) to assess and recommend candidates, setting aside their Annual Performance Appraisal Reports (APARs).

In a letter to public-sector banks (PSBs) and state-run life and non-life insurers, the Department of Financial Services, under the Ministry of Finance, has communicated that the Appointments Committee of the Cabinet has approved the revised consolidated guidelines for the appointment of whole-time directors (WTDs), including chairpersons, chief executive officers (CEOs), MDs, and executive directors (EDs), at such institutions. Business Standard has reviewed a copy of the letter.