Maximum tenure of PSU banks' CEO raised to 10 years

New Delhi, November 18

The maximum tenure of CEO and MD of public sector banks has been increased to 10 years, a move that will help the government retain the best talent in the banking sector.

New guidelines

• Earlier, the MD or executive director of a PSU bank was eligible for a maximum tenure of 5 years or 60 years whichever was earlier
• This is also applicable for whole-time directors of all Central Public Sector Enterprises (CPSEs)

As per a government notification dated November 17, 2022, the term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years.

Earlier, the MD or executive director of a public sector undertaking (PSU) bank was eligible for a maximum tenure of 5 years or 60 years whichever was earlier. This is also applicable for whole-time directors of all Central Public Sector Enterprises (CPSEs).

“A whole-time director, including the managing director, shall devote his whole time to the affairs of the nationalised bank and shall hold office for such initial term not exceeding five years and extendable up to a total period, including the initial term, not exceeding 10 years, as the Central government may, after consultation with the Reserve Bank, specify and shall be eligible for re-appointment,” it said.

The amendment would be called Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022, it added.