The government opens up the role of SBI’s governing body to the private sector

The government has agreed to open the role of managing director at the State Bank of India to the private sector for the first time. The Ministry of Finance said in a notification that the position of Director General will be open to the private sector for candidates with at least 21 years of experience.

The notification stated that the candidate should have at least 15 years of banking experience with:

• At least two years at the bank board level or
• At least 3 years at the highest level under the bank board level

She said candidates who are qualified under a position in the private sector must also be qualified under an open position. However, for private candidates, IB clearances and consultation with the Reserve Bank of India will be required before submitting the proposal to the Appointments Committee of the Cabinet (ACC).

The government has allocated three other director positions only to the public sector to be filled by internal candidates. The required eligibility criteria are as follows:

• Deputy Managing Directors (DMDs) of State Bank of India (SBI) with at least two years’ service in the post of DMD
• Executive directors of nationalized banks who have spent at least two years serving as CEO
• MD & CEO of a nationalized bank with at least 2 years as MD & CEO in current position and having remaining service of 2 years (treat 60 years as retirement date)
• Candidates holding the position of Chief Vigilance Officer (CVO) will not be eligible to be considered for appointment to this position

For public sector candidates, Central Vigilance Commission approval and consultation with the Reserve Bank of India will be required.

The notification stated that the Financial Services Institutions Bureau (FSIB) may engage a human resources agency to conduct an assessment of the conduct and competency of candidates. The agency will be limited to conducting the initial assessment only and will not participate in the shortlisting of candidates.

Candidates will be marked out of 100 for their interaction with the FSIB.