Modi Govt Overturns UPA's Selection Of Six PSU Bank CMDs

The Narendra Modi-led government has scrapped the appointment of six public sector bank CMDs selected by the United Progressive Alliance (UPA) government. The extreme step has been taken as some irregularities were found in the process of selection.

The UPA government had shortlisted chairman and managing directors for Bank of Baroda, Canara Bank, Indian Overseas Bank, Oriental Bank of Commerce, United Bank and Vijaya Bank. The names were forwarded to the Finance Ministry for ratification by the Appointments Committee of the Cabinet.

"After receipt of the report of the committee, the government has decided to cancel the current selection process of CMDs/EDs of public sector banks (PSBs). The government constituted a committee consisting of secretary, secretary and governor, RBI to examine the selection process adopted for the selections to the posts of CMDs/EDs for 2014-15," a Finance Ministry statement said. "...Eight posts of CMDs and 14 posts of EDs would require to be filled-up de novo," it added.

A high-level committee comprising of expenditure secretary, RBI governor and secretary, school education was set up to examine the selections. The posts will now be filled through a fresh selection process.

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