The ministry has also relaxed the guidelines for promotion of officers, who do not have sufficient work experience in rural/semi-urban areas, and specialist officers, who do not have sufficient experience in field operations.
Overall, the number of GM positions in the 19 nationalised banks has been increased from 420 to 442. A GM usually heads a business vertical at the head-office or heads a circle office.
The reason for the increase is that over the years mismatch has developed in the number of posts at senior positions, thereby creating difficulties in manpower management.
Between March-end 2011 and March-end 2013, the aggregate business (deposits plus advances) of the 19 banks increased by 33 per cent to Rs 68,34,768 crore.
Nationalised banks are governed by the Banking Companies (Acquisition and Transfer of Undertakings) Act.
In July 1969, 14 major scheduled commercial banks, including Punjab National Bank, Bank of Baroda, and Central Bank of India, with deposits of over Rs 50 crore were nationalised under the aforementioned Act.
In April 1980, six more private sector banks, including Andhra Bank Ltd, Corporation Bank, and Vijaya Bank, were nationalised.
Among the 19 banks, Bank of Baroda (BoB) and Indian Overseas Bank (IOB) have been allowed to create the maximum number — three — of additional general manager (AGM) positions.
Post the increase, BoB will have 43 GMs, the highest among all nationalised banks, while IOB will have 24 GMs.
In the last two financial years, BoB and IOB have logged the highest growth in business in percentage terms among the 19 nationalised banks. These two banks have seen their total business (deposits plus advances) jump 50 per cent (to Rs 8,06,696 crore as on March-end 2013) and 41 per cent (to Rs 3,66,501 crore), respectively.
Indian Bank, Corporation Bank, Allahabad Bank and Syndicate Bank can create two more GM positions. Eight other banks, including Central Bank of India and Union Bank of India, can have one more GM.
However, the number of GM positions in five banks — Punjab National Bank (41), Bank of India and Canara Bank (38 each), United Bank of India (13) and Punjab and Sind Bank (12) — remains unchanged.
The ministry said if required, banks may, with the approval of their boards, relax the promotion guidelines.
This relaxation comes as the banks will need to fill the vacancies arising from the superannuation of a large number of employees who were recruited in the mid-to-late 1970s.
In case officers being considered for promotion in 2013-14 do not have sufficient work experience in rural/semi-urban branches, they may be posted to such areas post-promotion in order to fulfil the mandatory requirement.
If officers of specialised cadre (IT, accounting and law) do not have sufficient experience in field operations, they too may be posted to such positions post-promotion.
Source: Hindu Business Line, 17 June 2013