Top PSU bank roles open to private sector: SBI MD, ED positions to welcome external candidates; eligibility criteria changed – The Times of India

The government has opened senior management positions in public sector banks, including State Bank of India (SBI), to private sector professionals, a move aimed at broadening the talent pool for top banking leadership.Under the revised appointment guidelines, one of the four Managing Director (MD) posts at SBI is now accessible to private sector candidates and individuals from other public sector financial institutions, PTI reported. Previously, all MD and chairman positions were filled internally.The new guidelines also allow private sector professionals to apply for Executive Director (ED) positions across public sector banks (PSBs). In addition to SBI, the 11 other nationalised banks—including Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, and Bank of India—are covered under the framework.Private sector candidates for the MD post must have a minimum of 21 years of professional experience, including at least 15 years in banking and two years at the bank board level. For ED roles, candidates need at least 18 years of experience, with 12 years in banking and three years at the highest level below the board. Eligibility for public sector candidates remains unchanged.According to the guidelines issued by the Appointments Committee of the Cabinet, the first vacancy of SBI’s MD will be treated as open to all eligible candidates, while subsequent vacancies will be filled by internal PSB candidates. For ED positions, one post per bank will be accessible to both private sector and internal candidates.However, officers holding the post of Chief Vigilance Officer (CVO) are ineligible for these appointments. The eligibility rules for nationalised banks also specify service requirements at the Chief General Manager and General Manager levels through FY2027-28, after which candidates need a minimum of two years as Chief General Manager.