The Government of India has opened senior leadership positions in public-sector banks, including the managing director post at the State Bank of India, to private-sector professionals. The move follows new consolidated guidelines issued by the Appointments Committee of the Cabinet, which replace all earlier directives on appointments in public-sector banks.
Under the revised rules, private-sector professionals with at least 21 years of total experience — including 15 years in banking — can now compete for managing director, chief executive officer and executive director roles in public-sector banks. Applicants must have either two years’ experience at the board level or three years at the highest level below the board.
For internal candidates, existing deputy managing directors, executive directors and managing director & chief executive officers with sufficient tenure will remain eligible.
The Financial Services Institutions Bureau will handle the selection process. The bureau may also engage independent human-resource agencies to conduct behavioural and competency assessments before interviews.
In a notable change, Annual Performance Appraisal Reports will not be used for scoring. Instead, performance during interactions with the FSIB will determine shortlisting and recommendations.
All appointments will require clearances from relevant authorities, including the Reserve Bank of India. For serving public-sector officers, clearance from the Central Vigilance Commission will also be mandatory before submission to the Appointments Committee.
The new framework maintains existing provisions for term of office, salary, and superannuation as defined under the State Bank of India Act, 1955, and the Nationalised Banks (Management and Miscellaneous Provisions) Scheme.
Officials confirmed that the first upcoming vacancy for the SBI managing director post will be treated as an open position, allowing private-sector professionals to apply. Future vacancies, however, are expected to be filled primarily from within the public-sector system.
The guidelines also outline rules for maintaining waiting lists, assigning additional charges and disqualifying candidates with pending penalties.
The government said the revised norms aim to expand the pool of eligible talent, improve transparency and encourage merit-based competition in the leadership of public financial institutions.
