Govt opens SBI MD post to private sector for the first time
IN a first for Indian banking, private-sector professionals are now eligible to apply for senior leadership positions in public-sector banks (PSBs), including the prestigious Managing Director (MD) role at the State Bank of India (SBI), NDTV Profit reports.
The reform represents a significant change in the selection process for top roles such as MDs, Chief Executive Officers (CEOs), and Whole-Time Directors (WTDs) across public financial institutions. It forms part of a broader initiative to encourage transparency, competition, and merit-based hiring at the highest levels of the banking sector.
According to a communication reviewed by NDTV Profit, the Appointments Committee of the Cabinet (ACC) has approved updated consolidated guidelines for appointing WTDs-including Chairpersons, CEOs, MDs, and Executive Directors (EDs)-in PSBs and state-owned insurance companies.
Under the new rules, private-sector candidates can apply for the SBI MD position if they meet specified eligibility criteria. Applicants must have at least 21 years of professional experience, including a minimum of 15 years in banking, and should have served either two years at the board level of a bank or three years at the highest level below the board.
The Financial Services Institutions Bureau (FSIB), tasked with recommending candidates for top financial appointments, has been authorised to hire independent HR agencies to evaluate private-sector applicants. Notably, the government has removed the requirement of Annual Performance Appraisal Reports (APARs) from the selection process, signalling a move toward a modern, performance-based assessment framework.
The Department of Financial Services (DFS), under the Ministry of Finance, has formally communicated these changes to public-sector banks and state-run insurers, outlining the revised appointment procedures.
Officials told NDTV Profit that the reform is expected to attract top talent from both the public and private sectors, strengthening professionalism and accountability in PSB leadership. "This reform aims to bring transparency, diversity, and merit-based selection in leadership roles across India's financial institutions," a senior official was quoted as saying.
