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F. No. 2/19/2011-IR
Government of India
Ministry of Finance Department of Finance Service
Jeevan Deep Sansad Marg
New Delhi-110001
Date the December 02, 2011
 

To
 

CEOS of all Public Sector Banks

Subject : Posts of General Managers/Deputy General Managers/ Asstt. General Managers in Public Sector Banks
 

Sir,

1. This Department had vide circular Nos. 2/19/2004-IR dated 19th August, 2005 and 31st July, 2007, laid down the guidelines for the creation of posts of GMs. With the passage of time, due to changed business scenario and considering the valuation at current prices, these norms have become obsolete. Secondly, the business scenario has changed with Public Sector Banks investing considerable amounts in technological advancement and also the core banking solution is now in place.

2. It has also been noticed that over the years some mismatch has developed in the number of posts at senior positions and at the immediate feeder channels, which is creating difficulties in proper manpower management.

3. Draft guidelines No.4/11/1/2011-IR dated 2nd November, 2011 were circulated by the Department on this subject to all Public Sector Banks. Comments of PSBS have been received on the draft guidelines and have been examined in this Department. Based on the feedback from PSBs, in supersession of all previous circulars on the aforesaid subject, it has been decided to issue the following guidelines.

(i) Business Number of GMS :

Up to business of Rs.1,20,000 crores Number of GMS is 12
Beyond business of Rs.120,000 crores One additional GM for every Rs.15000 crores

The number of General Managers in Banks as on date as per new guidelines will be as under:

 

Name of the Bank           Business mix as on 31.3.2011             No. of GMs now proposed

Punjab and Sind Bank               102556                                                     12
Dena Bank                                109373                                                      12
Bank of Maharashtra               114332                                                      12
Vijaya Bank                              122470                                                       12
United Bank of India                131779                                                       12

Andhra Bank                              164310                                                      15
Indian Bank                                181530                                                      16
Corporation Bank                       203598                                                     17
Allahabad Bank                           226458                                                     19
OBC                                              235893                                                    19
Syndicate Bank                            243946                                                     20
UCO Bank                                    245839                                                     20
 

Indian overseas Bank                   259020                                                      21
Central Bank of India                   310763                                                      21
Union Bank of India                     355483                                                       27
Canara Bank                                506440                                                       37
Bank of India                                515040                                                       38
Bank of Baroda                            536765                                                       39
Punjab National Bank                   555006                                                      41
 

Total                                                                                                              410
 

(ii) In addition to above, there shall be one additional post of GM as CVO.
(iii) Besides this, Bank can create one post of GM (IT) in addition to the above, provided the Bank has engaged an officer from outside on the basis of lateral entry for the purpose, at the level of GM.
(iv) The ceiling will not include GM level officers to overseas branches by the banks as per need based and with the approval of the Board.
(v) Number of GMS which would be deployed in RRBs/Subsidiaries would be over and above the ceiling.
 

(vi) A ratio of 1:3:9 shall be prescribed for General Managers, Deputy General Managers and Asstt. General Managers respectively. (Number of DGMs to be three times the number of GMs and number of AGMs to be three time the number of DGMs.) Number of posts of DGMs and AGMs already existing which are over and above the number of DGMs and AGMs shall continue till the desired ratio is achieved.

(vii) Banks, where the GMs already in position are over and above the GMs as per para (i) above, will be allowed to continue with the higher number till they reach the required level of business or till such time the required number is reached due to vacancies in

(vi) The Banks shall be free to decided their actual requirement of posts within the ceilings.
 

(vii) The guidelines shall remain effective till 31.3.2013 and shall be reviewed w.e.f. 1.4.2013.

 

Yours faithfully,
 

Sd.

(Vijay Malhotra)
Under Secretary to the Government of India

 

 

(2) Letter No. 2 :

F. No. 4/11/1/2011-IR
Government of India
Ministry of Finance Department of Financial Services
Jeevan Deep Building, IIIrd Floor,
Parliament Street, New Delhi – 110 001
Dated the December 5, 2011.

 

Chairman & Managing Directors of all Public Sector Banks

 

Subject : Guidelines for Promotions in Public Sector Banks
 

Sir,

1. Government vide circulars No. 4/5/6/84-IR dated 23.06.1986 and 14/18.09.1987 respectively, had laid down the promotion process to be followed in Public Sector Banks. It has, however been noticed that over the years, many banks have deviated from these guidelines and have not only change the eligibility in terms of experience but have also introduced various channels of promotion other than seniority such as “Fast Track” and “Superfast Track”. This has created a large number of anomalies across banks in their promotion process which have created difficulties in addressing the issues of severe shortage of manpower at top management levels in Public Sector Banks.

2. The Matter of revision of the guidelines has been under consideration of the Government. Draft guidelines on the subject were issued by this Department; vide letter of even number dated 21.10.2011 and 29.11.2011 for views / comments of Public Sector Banks.

3. After taking into consideration the suggestions received from Public Sector Banks in this matter, the Government, in supersession of the earlier guidelines issued in this regard, issues the following guidelines :-

i. The channel of promotion and minimum experience requirement at various levels shall be as follows :-

Scale Promotion Channel         Min.Exp Requirement   Max.Permissible Relaxation by Board      Minimum length of services
                                                     (in years)                          (in years)                                                 (in years)
I to II Normal/Seniority Channel           5                                         1                                                         NA
Merit/Fast Track Channel                     3                                         1                                                         NA
II to III Normal/Seniority Channel         5                                         1                                                         NA
Merit/Fast Track Channel                     3                                         1                                                         NA
III to IV Merit/Fast Track Channel       3                                          1                                                        NA
IV to V Merit Channel                          3                                          1                                                        12
V to VI Merit Channel                          3                                          1                                                        15
VI to VII Merit Channel                        3                                          1                                                        18
 

ii. The cutoff date for determining eligibility as well as completed years of service will be as on the 1st of April of the financial year (April – March) in which the vacancies arise.

iii. No officer would be given the benefit of relaxation in the minimum required experience by the Board at two successive levels of promotion in Scale – III and above.

4. Promotion from Scale – I to II and II to III

i. There shall be a requirement of minimum 75% marks in APAR for each of the years of service eligible for promotion in case of promotion on merit / fast track channel.

ii. There shall be a mandatory requirement of two years continuous service in rural areas for promotion from Scale – I to II, and a total of three years in rural / semi-urban areas, including the rural service in Scale – I, for promotion from Scale – II to III. For the seniority channel, officers who have put in more than the aforesaid service in rural areas will get an advantage of further relaxation of 50% weightage in minimum experience for each additional completed year of service while assessing their eligibility as per Para 3(i) above.

5. Promotion from Scale – IV and above

i. For promotion from Scale – III to IV and IV to V, it will be mandatory to pass an examination to test for computer literacy and computer knowledge.

ii. For being eligible for promotion to Scale – V, the candidates should have been a Branch Head for at least three years. Officers recruited for specialized cadre would be required to have field experience in a branch or as branch head. In case of officers in specialized cadres, this requirement can be complied with over the next three years, beginning with 2013-14 when experience of one year, and two years for the year 2014-15 would be necessary.

iii. For being promoted to Scale – VII, the officer should have Regional / Circle Head or must have worked, in Scale – III to V, in the Regional / Circle Office for two years.

iv. It shall be mandatory to have a Group Discussion to assess the communication, conceptual and leadership capabilities for promotion to Scale – IV and V. For this purpose, a Board consisting of outside experts and officers of the Bank should be constituted with the approval of the Board.

v. Bank shall make appropriate job rotation policy giving exposure to all verticals for officers in Scale – V and VI and get it approved from the respective Board.
vi. The interview committee for promotion to Scales – V, VI and VII should have two outside expert with domain knowledge approved by the Board of the Bank for each year.

vii. During interview for Scales – V, VI and VII, weightage should be given to the following :-

a) Whether the officer has worked in different specialized areas of the banks.
b) Whether officer has been posted to different parts of India or has been only one / few Region / Circle.
c) Whether the officer has experience of working in the field as well as working in Regional / Zonal and Head Office.
d) Whether the officer has professional qualifications and has the officer acquired additional qualifications after joining the service.

 

6. Banks would be free to also have system of written examination for promotion at various levels as per their Board approved policies.

7. (i) For specialist cadres, namely, forex, credit, technology, HR, wealth management, etc.. it shall be mandatory that prior to joining the main stream cadre, the officers joining these cadres should necessarily remain in that cadre for at least five completed years of service. Thereafter, the officer should gain experience of at least two years in field operations. There will be exemption from posting to rural areas for these officers.

(ii) Officers recruited in the specialized cadre would be eligible for promotion in their respective cadre as per the eligibility and experience mentioned at para 3(i) above and shall be allowed to join the main stream in the event of completion of service as mentioned in para 7(i) above. It must, however, be ensured that suitable replacements are placed in the vacancies likely to occur in specialized cadres.

(iii) Banks should ensure that before moving the officer to a field position or to main stream cadre, they develop the capacities of other officers of the bank in order to ensure proper functioning of that specialized vertical. No officer shall be moved to the main stream cadre / filed positions without ensuring this.

 

8. The zone of consideration for promotion should be strictly maintained at 1:3 ratio. However, in case, the required number of suitable persons is not available, the banks may enhance this to 1:4 with prior approval of the Board.

 

9. The guidelines shall come into force with immediate effect and shall be operationalised after adoption by the respective Boards.

 

This issues with the approval of Secretary (FS).

Yours faithfully,
Sd.

(Vijay Malhotra)
Under Secretary to the Government of India