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 Hot Talks in Banking Circles

(Are  above circles  moving or is it only illusion ??  Are Some Hot talks only illusions ?? )

Compiled by

Rajesh Goyal 

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15th Febraury 2015:  Arun Srivastava, ED in Bank of India is likely to be the next MD and CEO of Syndicate Bank



2nd January 2015:  A lot of controversy is raging for the new selection process to adopted for selection of 3 CEOs & MDs for A Category banks i.e PNB, BoB and Canara Bank



2nd January 2015:  Banks are also discussing about the completion of the process of selection for the posts of EDs in natinalised banks.   However, names are yet to be cleared by CVC  for vigilance purpose.  



2nd January 2015 : Bankers are still grappling with the split of the CMD posts into two separate posts i.e. (a) Part Time Chairman (b) CEO & MD post.  The new roles are likely to take much more time to settle as bankers have been tuned to handle only single post at the head of the institution.





18th December, 2014 : The appointment of new CMDs in seven banks is still likely to take few days as certain issues are being settled before the final list is released.



27th November, 2014 :  Bankers are now waiting for the release of the final list of CMDs to be posted in 8 banks.   The reports indicate that the list may be released by the end of the month or earlier December 2014.   Further, the name of Mr B B Joshi (at present ED at BoB) is in hot discussions as he is tipped to be CMD of an important nationalized bank by early December 2014 itself.  The candidates who have appeared are keeping their fingers crossed as it is the first selection process after the change of government at the Centre.



17th November, 2014 :  As reported earlier, now the process of selection of 8 posts for CMDs in various banks has started.   The reports indicate that there are 16 eligible candidates for these posts.   Thus, chances of the candidates are 1:2.   The bankers are discussing the changes in the process of selection under which it is proposed to set up THREE SELECTION COMMITTEES, each having only two members.  These THREE committees are to hold interviews of all the eligible candidates i.e. each of the eligible candidate is to be screened through each committee separately. 

Now bankers are hoping that this change in the procedure will make it more and more difficult for the candidates to influence THREE selection committees which earlier used to be influenced by Financial Services Secretary, who used to have almost final say.  Let us watch this new trend evolves. 

 Update: Three more candidates have been added to the list of candidates that are to appear before three sub-committees as their vigilance is said to have been cleared.  These three are IDBI Bank DMD BK Batra, Andhra Bank ED S K Kalra and finally Dena Bank CMD Ashwini Kumar.  This may be for first time that a CMD is appearing for CMD post? Bankers are not sure about the reasons for the same.

It is also reported that final selection to the posts of CMDs will be done by the Appointment Board which will be chaired by RBI Governor, and the same will be based on the weighted average maks given by each of the three committees.   The trend is likely to make RBI Governor more powerful and CMDs are likely to fall in line with RBI's dictates easily.  Hopeful this will help banking industry where greater respect will be enjoyed by RBI Governor.



30th October, 2014 :  The process of selection of 8 CMDs and 14 EDs is now likely to start towards the end of November 2014, but the procedure may not undergo major changes at least this time.  Under the existing procedure RBI Governor heads the Search Committee for selection of CMDs and EDs, but he does not sit in the interview committee.  He appoints a sub committee and the DG from RBI and interview is taken by the panel where two external experts are appointed and Financial Services Secretary is also part of the panel.    The questions are now being raised about the crucial role played by Financial Services Secretary as being the top person in the panel has his way in final appointments.  A row has ensued that RBI Governor too should be part of the interview panel so that the panel is more balanced. Will new Government make some changes in selection process or it will be as good or as bad as it is at present.



30th October, 2014 :   It is reported that Central Vigilance Commission (CVC) is now required to complete the vigilance clearance process within two months from the date of receipt of the vigilance profile of the candidates selected for the appointments on board of Public Sector Undertakings (PSUs).  This will give some respite to officials who had their fates hanging for months together and were at the complete mercy of CVC.



29th October, 2014 :   The scrapping of the panel of 6 CMDs and 14 EDs for appointment in PS Banks during 2014-15, has come as a jolt for some of the top brass of PS Banks.   The report of TOI which appeared few weeks back  is a hot topic as that  report clearly pointed that that a  letter was  sent by CBI Chief to finance ministry citing reports of irregularities in several of such appointments.   CBI seems to have found clues suggesting that ACRs and interviews were managed and some middlemen played a role.

Interestingly, bankers are also talking about the reports which indicate that five of the nine short listed candidates were under the Central Vigilance Commission (CVC) scanner.    Another interesting thing which has been highlighted after the sacking of Syndicate Bank CMD is the fact that Mr. SK Jain (CMD of Syndicate Bank who was arrested by CBI in early August 2014 on bribery charges) was  appointed as CMD despite having "poor" ACRs.

The above shows the deep rooted malaise in the banking sector and reasons for ever increasing NPAs and poor health of most of PS Banks.  Banking fraternity is in dilemma whether they should celebrate this cleaning act or mourn the indelible stigma left by people at the level of CMDs and EDs.


28th October, 2014 :   Reports indicate that finally Mr KR Kamath has not been given extension though he has not yet completed 60 years of age.   This has resulted in lot of speculation among bankers.  The comments on FaceBook indicate number of employees are exchanging greetings on his departure.  

There are speculations as to why this has been done - one view is that the new government will not follow the policy of extensions, whereas the other view is his close proximity with the previous government.  

Another speculation going around in Bank is that it is on account of his extremely poor performance as CMD of PNB which was ranked as number one PS Bank when he took over as CMD in 2009, and now PNB has slipped to rank of four or so, and has huge NPAs and the worst part is that the morale of the employees at all levels is at the lowest ebb.   During his tenure he surpassed many competent senior officers in promotions by introducing the concept of preferring junior officers (preferring those who are to retire beyond 2020), and called it 2020 scheme.   Such officers were even openly encouraged to have separate meetings among themselves and called it 2020 Club !  Thus, senior (age wise) officers got antagonized  as they have to work under junior officers although they were equally competent but were ignored merely on account of age factor.   Younger staff failed to deliver on account of rift generated between such groups.  Such open support for officers retiring beyond 2020 proved disaster for the moral of the senior officers and ultimately for the bank.  His policy of compulsory transfers across India was another red herring for officers, which he tried to correct during last year of his tenure but  failed to enthuse the officers.  

Good luck to Mr Kamath for his future / retired  life (Hopefully he too will join some private sector firm like his predecessor Mr K C Chakrabarty !) and hope the new incumbent will learn the correct lessons based on past mistakes, and will be able to remove the rift and PNB will again achieve the glory which I have seen during my service of being No. 1 in the industry for almost 30 years (from 1980 when we joined till 2011 when I left).

The truth for not giving the extension will be known to select few people or it may be out later on.  Till that time we, like other bankers can only speculate.


28th October, 2014 :   We are writing on this page after long time as for last few months there has been no activity on promotions and appointments of bankers,  Today it is a hot topic among top bankers that Mr K R Kamath, CMD of Punjab National Bank has been refused any extension though he still had 13 months of service left.   Although some sources indicate that last minute efforts are on for the extension.   If he is not given any extension, it will be one of the rare cases where a CMD has been retired before completion of 60 years of age.  Bankers are speculating about the reasons for denial of extension.

28th October, 2014 :  The controversial Dr K C Chakrabarty, former CMD of PNB and also ex-Deputy Governor of RBI who took voluntary retirement a few months before his retirement from RBI, is said to have joined as an Independent Director of Indiabulls Housing Finance.   Bankers are talking about the morality of joining such a job after remaining DG of RBI.    

3rd February, 2014 :  Interestingly, once again an IAS Officer has been appointed as CMD of PSB.    Mr Jatinder Bir Singh, an IAS officer of 1983 batch and belonging to Assam-Meghalaya cadre has been appointed as Chairman and Managing Director of Punjab & Sindh Bank (PSB)
31st January, 2014 : It is hotly being debated as to why this Government is in hurry to clear the list of promotions to the posts of EDs from the existing GMs of Banks?  It seems Congress Government has resigned that it will come to power this time.  Thus, they are in hurry to clear the list, though first posting of the new EDs is due to start only from August 2014.   What will the new Government do with the list cleared in hurry now.  Only God  knows.
29th January, 2014 : A number of bank officers are always looking for VRS owing to unnecessary pressure tactics adopted by management or rarely on personal reasons.  However, there are only few instances where officers in Scale V and above have opted for VRS.  Reports indicate that Mr S K Widhani, General Manager at Allahabad Bank has sought VRS.  Any guesses for the reasons ?
28th January, 2014 : Mr R V Verma, who is said to have resigned, is likely to join Pension Fund Regulatory and Development Authority ( PFRDA).  Just wait and watch.
27th January,  2014:  There is a buzz in banking circles that Mr R V Verma, Chairman of National Housing Bank has sent his resignation.  The rumors are going around about his next move.

27th January,  2014:  Reports indicate that the list of 14 GMs to be promoted as ED in various banks has been finalised and the same is likely to be sent to ACC for approval soon.

26th January,  2014:  J K Singh Kharb, GM at Dena Bank has joined as new Executive Director of the Allahabad Bank.
26th January,  2014:  B K Divakara, General Manager at Corporation Bank, has been appointed new Executive Director of the Central Bank of India.








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3rd December, 2013:   Mr Arun Tiwari, at present Executive Director with Allahabad Bank, is likely to join Union Bank as CMD.  Earlier reports had tipped the name of Mr B K Batra for the same post.

7th October, 2013:   The orders apoointing Shri Gauri Shankar (DoB 25.03.1956) as the Executive Director of PNB have been issued.  He has been appointed to ED's post upto 31.03.2016+ i.e. the date of his attaining the age of superannuation. (At present he is GM, BoI)

4th October, 2013:   It is reported that the orders for appointing Mr S R Bansal (DoB 03.01.1956), as CMD of corporation Banks have been issued (At present he is ED at PNB).  He will remain to the elevated post till 31.01.2016 ie the date of superannuation.

3rd October, 2013:   Banker are likely to soon  see the orders for the appointment of Ms Arundhati Bhattacharya as the new Chairperson of SBI.   The post had become vacant after the end of the tenure of Mr Pratip Chaudhuri  ended on 30/09/2013

3rd October, 2013:  Mr S Muhnot (presently with SIDBI) is tipped for the top post of BoM in place of Mr Narendra Singh, who has retired on 30th September, 2013.

st October, 2013:  Mr S R Bansal, ED with PNB is likely to receive his posting  orders on promotion as CMD in Corporation Bank in next two to three days.  Simultaneously,  the orders of Mr Gauri Shanker (presently GM in BoI) for posting as ED in PNB in place of Mr Bansal are expected.  Good Luck to both of them


Hot Talks Archives i.e. topics discussed under this head upto 2013 are available  on a separate page.  You can click and view the old Hot Talks topics


Hot Talks are merely those talks which are being talked about by bankers and / or appear in media based on inside reporting. cannot guarantee these to be true and/or necessarily correct as final decision on many issues is yet to be taken.   Visitors to website are, therefore, advised to wait for the final decisions and recheck from their own sources the veracity of these reports. is thus in no way responsible for authencity of these talks.


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