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                                  Should RBI Governor Be Part of New Selection Process for CMDs / EDs ? He Was Part of the Earlier Selection Process Which Has been held to be Irregular and Now Scrapped


Anil Gaindhar 

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Modi Sarkar deserves kudos for taking bold decision of canceling the appointments of CMDs and EDs in Public Sector Banks. This decision was taken by UPA in Jan 2014 for the appointments due in PSBs  from August 2014. What was the hurry on the part of UPA. The answer is self revealing to any person having common IQ. It is open fact that these appointments are taken after lot of lobbying by the vested groups mainly by the corporates having weak credentials.

Now the issue which needs a lens eye is the Role of  RBI governor. The RBI governor was the key person in the Selection process in Jan 2014.  Again he was member of the committee appointed by Modi Sarkar which has done the probe to identify the irregularities as well as short coming in the selection process. Surprisingly the committee had two independent members Secretary expenditure and secretary school. Do these two persons have any banking expertise which needs the attention of all the concerned more particularly the attention of intelligent advocate turned finance minister besides part time defence minister.

Equally baffling on the part of the present Sarkar is the time taken i.e. after 155 days to arrive at the conclusion that the process was not above board. One convincing reason might be  that the FM and Raksha Mantri was not well for almost one month.

Coming to the issue of fresh policy on appointments - one of the members of the panel would be again RBI Governor!!!!!.  Is there is any credibility of the RBI GUV in the present context. The RBI Gov must be as clean as whistle.

The contention of the Government that the selection process by UPA 2 was spurious which needs to purified. Will it not be proper in case fresh faces are brought who have respect in the public and honest image like that our PM. May be retired Governors and persons of likes of Vinod Rai, Kiran Bedi can be involved. Their task may not end here for the selection of CMDs and EDs but to evolve a clear cut direction for the entire promotion process.

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The UPA diktat of selecting General Managers and Deputy General Managers in PSBs well in advance as early as one year from the due date also needs to be reviewed in toto. It is preposterous in Banking to announce promotion one year in advance and one can foresee the performance  during the waiting period. Why should I study when I am pronounced as passed in the exams. It is matter of rule that the executives promoted one year in advance do not take any decision in the interest of the public or for the  growth of the respective institution.

I am very optimistic of the capability of Manyavar Arun Jaitly ji to really bring some out of box thinking for a transparent process for the selection of honchos in PSBs besides down the line  executives of the rank of General Managers and Deputy General Managers.

Keeping and complying the deadline in this entire exercise is of paramount importance.

 PSBs at present do not enjoy a clean image in the Public domain particularly in the area of giving loans to the corporates and initiating swift recovery action as is done in the new private sector Banks in the Indian Market. The proposed action as envisaged by the Govt for the reforms, can go a long way  in not only in reducing the mammoth amount more than three lac crores of Non performing loans but also to prevent further detritions of the quality of assets in PSBs and functioning of these Banks






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