In view of recent reports about the outcome of the process for selecting the chiefs of five public sector banks, the Finance Ministry on Monday said the selection process is confidential and the results will be known only after approval of the Appointments Committee of the Cabinet.

The five large PSBs which do not have MD and CEO are Bank of Baroda, Bank of India, Punjab National Bank, Canara Bank and IDBI Bank. Terming the reports about the outcome of the selection process as speculative, the Ministry, in a statement, said these create unnecessary confusion not only among the candidates who were part of the selection process but also among the members of public.

In a bid to bring some new blood at the top in public sector banks, the Government had changed the criteria for appointments. In the process, it also threw open the doors for experienced candidates from the private sector to take a shot at the top job.

However, the selection process seems to be taking unduly long. For example, the MD and CEO’s position in Bank of Baroda has been vacant for close to a year now. The senior most Executive Director has been given additional charge of MD and CEO.

“If these large banks remain headless for long, important decisions will be put on the backburner. The Government will want public sector banks to support the investment cycle of India Inc.

“So, as the owner of these banks, the government cannot afford to put off making a decision on key appointments in the banking sector any longer,” said a former chief of a PSB.

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