Banks Board Bureau (BBB), which has been tasked with recommending candidates for the top positions in public sector banks, is unlikely to invite candidates from the private sector to participate in the selection process for the CEO position and CEO of Union Bank of India (UBI).
He had recently stunned the banking world after removing the previous announcement in December 2021 inviting applications for the post of Managing Director and CEO of UBI by January 28, 2022. If the current guidance holds, the selection for the position the highest may come from “internal candidates” within the public sector banking system, banking industry sources said.
Current CEO and CEO Rajkiran Rai is due to step down in May 2022. A “technical error” – as some bankers call it – may have prompted BBB to cancel its December 2021 ad inviting applications.
As an eligibility criteria, BBB said in December 2021 that Indian nationals, aged 45 to 57, with an exemplary track record and at least 15 years of experience in the traditional banking industry, of which at least one year is expected be at board level, can apply to Post it. BBB had recently, while canceling its previous advertisement, also declared that “the selection process prescribed for the post would be resumed in due course”. This is interpreted by several observers of the banking sector as a message that the selection process will certainly be there, albeit without the participation of applicants from the private sector.
Banking industry insiders attribute the BBB’s decision to cancel its advertisement to the Union Bank of India failing to meet the criteria set by the government to invite private sector leaders to run the bank. He may recall that the government decided a few years ago that banks with business over 10 lakh crore could invite executives from the private sector for the CEO job selection process.
So, when the list of these banks was made, the Union Bank of India did not make the cut and therefore was not named in the relevant notification. However, now, with Union Bank having engulfed Andhra Bank and Corporation Bank during the recent PSB merger round, its overall business has passed the 10 lakh crore mark.
This “technical point” that Union Bank did not strictly meet the criteria approved by the Council of Ministers was brought to the attention of BBB, prompting it to withdraw its announcement, sources said. BBB has now realized that the Union Bank of India had not been covered by the previous notification issued by the government. So now BBB has two options – either approach the government (Cabinet Appointments Committee) for approval to hire someone from the private sector, or undertake a process to select the CEO from internal candidates in the sector’s banking system. public. , they said.
The buzz is that the BBB can settle for the second option. As the ₹ 10-lakh crore threshold was a Cabinet decision, any relaxation or decision on it will require Cabinet approval, they added.