Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

CEOs For State-Run Banks: Private Sector Can Apply

Photo Credit :

India, which is seeking new chief executives for five state-run banks that are currently without a permanent leader or have a departing boss, has for the first time appealed for private-sector applicants to step forward.
 
The government, which is trying to reform the country's banking sector, said on Thursday both public- and private-sector candidates could apply to run Bank of Baroda, Bank of India, Punjab National Bank, Canara Bank and IDBI Bank.
 
India usually picks bank bosses from the ranks of state-owned lenders, which dominate the sector with an over 70 per cent share of the country's banking assets. They have, however, lagged private-sector rivals in profitability and amassed bad loans at a faster pace.
 
The candidates need to have 15 years of mainstream banking experience with at least three years in board-level roles. The salary package will be "flexible", the government said.
 
But bankers say remuneration is the biggest hurdle for the government to attract private-sector talent as it is often a fraction of what top executives in private banks earn.
 
In December, the government said it would separate the role of chairman and chief executive in state-run lenders. It also plans to install non-executive chairmen to beef up governance.