India To Allow Private-Sector Executives To Compete For Top Posts In PSU Banks

In a key reform, the Indian government has reportedly opened the door for private-sector professionals to compete for top leadership roles in public-sector banks (PSBs), including for the position of Managing Director (MD) at the State Bank of India (SBI), a first in the country’s banking history.

According to an NDTV report, the Appointments Committee of the Cabinet (ACC) has approved new consolidated guidelines for appointing Whole-Time Directors (WTDs), including Chairpersons, CEOs, MDs, and Executive Directors (EDs), across PSBs and state-owned insurance companies.

Under the revised framework, private-sector candidates can now apply for the SBI MD post if they have at least 21 years of professional experience, including 15 years in banking, and have served either two years at the board level or three years at the top executive level below the board.

To ensure fair evaluation, the Financial Services Institutions Bureau (FSIB) has been empowered to engage independent HR agencies to assess private-sector applicants.

The government has also eliminated the traditional Annual Performance Appraisal Reports (APARs) from the process, introducing a more modern, performance-driven assessment model.

The Nifty PSU Bank index closed 1.67% higher on Friday, with all 12 constituents ending in the green. Strong gains were seen in shares of UCO Bank (+3.4%), Punjab & Sind Bank (+2.99%), Indian Overseas Bank (+2.84%), and Punjab National Bank (+2.3%). State Bank of India closed 2.2% up at ₹881.25.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on