<section class="jsx-2404185057 article__reader__magByLine"><strong>Mumbai: </strong>The government has doubled the maximum term for chiefs of public sector banks to 10 years from five years earlier by amending the Nationalised Banks Scheme, 1970. The notification, which applies to executive directors and MDs, allows for a term of five years, extendable for another five years.</section>
<section class="jsx-2404185057 article__reader__content set1">
<div>
<p id="2">Until now, the government could appoint a PSU bank chief for a maximum tenure of five years, including an initial appointment of three years which could be extended by two years. The retirement age continues to be 60, which means that most of the existing bank chiefs will not be eligible for extensions. However, the successors of the current MDs of large banks like Bank of Baroda, who are due to retire, may get longer tenures.</p>
<p id="3">The move will also benefit executive directors who are in their early 50s or below and close to completing their term. Bankers and consultants welcomed the move, stating that this would now enable the government to attract talent for the public sector banks, which have grown significantly since the consolidation.</p>
</div>
<div>
<p id="2">Although the government now considers professionals from the private sector for recruitment as bank chiefs, it has not been successful in attracting new talent. Former Citibanker CS Jayakumar was the sole private sector executive appointed chief of Bank of Baroda for four years in 2015. Now the prospects of a 10-year tenure is likely to attract new candidates.</p>
</div>
<div>
<p id="2">According to banking industry sources, most of the chiefs of public sector banks are appointed from outside the bank. It takes them a year to familiarise themselves with the bank and they cannot see through to completion any changes they introduce. The frequent changes in CEO positions also lead to change in strategy as the new chief usually has a different approach than the predecessor.</p>
</div>
<div>
<p id="2">&ldquo;In the private sector, the chiefs of all the private banks that are doing well have had tenures for more than five years. With banks set to double in size in the next five years, there is a need for strong leadership,&rdquo; said the CEO of a bank.</p>
<p id="3">Industry sources said that the government was unlikely to increase the retirement age from 60 as it would set a precedent for other sections of the government.</p>
<p id="4">In the private sector Aditya Puri led HDFC Bank for over 25 years and Uday Kotak continues to lead Kotak Bank since it received a banking licence in 2003.</p>
<p id="5">Shyam Srinivasan has been leading Federal Bank since 2010. Earlier this year, the RBI capped the maximum tenure of public sector banks chiefs at 15 years.</p>
</div>
</section>

Govt doubles max tenure for PSU bank chiefs to 10 years

English

Spanish(español)

Bengali(বাঙালি)

Gujarati(ગુજરાતી)

Hindi(हिन्दी)

Malayalam(മലയാളം)

Tamil(தமிழ்)

Telugu(తెలుగు)

The Times of India Hyderabad

Tollywood was happy hunting turf for conman

State-funded Metro to chug into RGIA in 3 yrs

Rajiv Makhni becomes the face of smart tech luggage with proximity indicator

I want to reach out to Samantha and tell her that if I can make it, so can you, says Vikram Bhatt

Rain ruins second ODI

Croatia come in hard, show Canada the exit

Denmark calls on Euro 2020, Eriksen experience

Ronaldo targets KO berth

Govt doubles large aircraft wet lease period to 1 yr

Deuba's party emerges as single largest party in poll

Download your favorite titles and read them offline, anytime and anywhere

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines and newspapers from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from {{magCount}}+ best-selling international titles.

Name

Please fill out this form if you need any help regarding publishing your content on Magzter

Since we launched, Magzter has been committed to partnering with global organizations to provide the greatest possible newsstand technology & service to our customers. Whether you are looking to offer magazine subscriptions to your customer database or just want to learn more, Magzter is committed to helping your business grow. To find out more, please fill out the questionnaire below: