Major reshuffle of top posts in PSU banks

A major reshuffle of top executives in 11 PSU banks is on the cards with the chairmen of Allahabad Bank, Corporation Bank, Syndicate Bank, Union Bank of India and Vijaya Bank slated to retire between March-July 2006.

Apart from CMDs, the posts of executive directors in six banks --  Andhra Bank, Canara Bank, Indian Overseas Bank, UCO Bank, Union Bank of India and Vijaya Bank -- are also slated to fall vacant during from December 2005 to August 2006.

A finance ministry official said government is likely to fill up the top slots from the existing pool of executive directors who have more than 2 years service left. The appointment committee of cabinet will vet the list of bankers and finalise the names in coming months, he said.

Some of the top performing general managers are slated to be elevated to the post of executive directors, the official said. The names of the GMs are yet to be finalised.

The chairmen who are slated to retire on March 2006 are K Cherian Varghese (Union Bank), V K Chopra (CorpBank), M S Kapoor (Vijaya Bank) and N Kantakumar (Syndicate Bank) while O N Singh (Allahabad Bank) will super-annuate on July 31, 2006.

Among the top contenders for the CMD's post are the present executive directors -- C P Swarnakar (Punjab National Bank), A C Mahajan (Bank of Baroda), M D Mallya (Oriental Bank of Commerce), P L Goirala (Bank of India), B Sambamurthy (Indian Bank), A B Dugade (Bank of Maharashtra), P P Malya (Syndicate Bank) and S K Goel (Allahabad Bank).

All of them have over two years of service left and could be promoted as chairmen in the next year, the ministry official said.

UCO Bank Executive Director B K Datta is slated to retire this month, while R Balakrishnan of Andhra Bank will vacate post on January 2006.

Vijaya Bank ED M S Aftab will retire on March 2006, while A R Nagappan of IOB and K Ratnakar Hegde of Union Bank would vacate posts in April. B Swaminathan, ED of Canara Bank is slated to retire in August 2006.

A bunch of young turks may be selected for the EDs posts that become vacant from November 2005 to August 2006. Some of the banks may appoint more than one EDs after the passage of the Banking Regulation Act, which has been cleared by Cabinet a few months ago.

Most of the PSU banks are now scouting for top-notch finance and IT professionals to take up higher posts.

Banking industry sources said PSU banks are not able to attract the best talents from IIMs or IITs due to rigidity in the salary structure.