MY VIEWS IN LIVE MINT ON SELECTION OF PSU BANK CEOs

'Live Mint' story on 03.03.13 : How the govt chooses PSU bank CEOs

Comments of Milan K Sinha
03 Mar, 2013 10:23 PM

How the govt chooses PSU bank CEOs is undoubtedly a very important issue which has been discussed appropriately and it is hoped to draw the attention of the power that be for initiating immediate rectification measures. It has really been an irony that selection of EDs & CMDs in PSU Banks in a non-transparent and adhoc manner without any professional approach as if these are purely political appointments based on whims and fancies of political masters and some bureaucrats in the concerned ministry.The outcome of this kind of selection process is vividly noticeable in all aspects of functioning of PSU Banks which every one knows are not in good health and require regular support from the govt. including infusion of capital in order to comply with the international norms of capital adequacy etc. Its a common requirement for any dynamic organisation to have a succession plan, if not for all segments of staff, but at least for top management including EDs & CMDs . Further, there must be a minimum tenure of 3 years for CMDs and  two years for EDs to know, understand and effect some value addition to the continuing process of action plan and also contribute towards change management keeping in view the growth road map of a PSU Bank. Failure to have a transparent and well laid down policy in this regard is definitely have wide ramification on all aspects of business, both top line as well as bottom line. It is a pity but a fact that the questions being asked to the interviewees for the apex positions are more or less the same & similar as being generally asked in PO's(Probationary Officer) interview or in interview for scale promotions which clearly reflects Govt's lack of professional commitment towards taking care of quality in selection even for   such vital positions necessary for ensuring a sound and vibrant PSU banking  in the country. If  an expert panel goes a bit deep into the problems PSU Banks have been facing over a few decades now, whether it pertains to liability or asset management, NPA or HR management, Risk or Fund management,  it can well be observed that the top management and the boards have failed to address even the important  issues proactively and professionally to keep the show going and live up to the minimum expectations of  the millions of stakeholders - the customers. There is no denying the fact that PSU Banks have immense potential and opportunities too to excel in all areas of banking operations provided meritocracy gets precedence over mediocrity in days to come. 

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                                                         Will meet again with Open Mind. All the Best.