New Delhi, Oct 10: For the first time, the Government of India has allowed private-sector professionals to compete for senior leadership roles in public sector banks (PSBs), including the prestigious Managing Director (MD) post at the State Bank of India (SBI), according to a notification by the Appointments Committee of the Cabinet (ACC).
The first vacancy for the SBI MD position under these new guidelines will be treated as open to private-sector candidates, while subsequent vacancies will initially be reserved for internal PSB officers. The guidelines also cover procedures for waiting lists, additional charge assignments, and penalty disqualifications.
Eligible candidates must have held at least two years at the board level or three years at the highest level below the board and possess a minimum of 21 years of professional experience, including 15 years in banking.
Existing laws, including the SBI Act, 1955, and the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, will continue to govern terms of office, salary, and superannuation. Internal candidates for positions like Deputy Managing Directors (DMDs), Executive Directors (EDs), and MD & CEOs with sufficient tenure remain eligible.
The Financial Services Institutions Bureau (FSIB) will oversee the selection process and may engage HR agencies for preliminary behavioral and competency assessments, ensuring a transparent and merit-based recruitment system.
This move aims to bring private sector expertise into public banks, strengthening governance, operational efficiency, and strategic decision making.