Call it Diwali bonanza for public sector bank employees at the Chief Manager and above levels in the nationalised banks.
The Department of Financial Services (DFS) in the Finance Ministry on Monday announced a major revamp of the middle level management structure in nationalised banks. This will significantly increase the promotion opportunities for those at Chief Manager (Scale IV) and above level.
The latest move — approved by the Finance Minister Nirmala Sitharaman — comes in the wake of requests received from various banks. It also addresses the high pace of digitisation, the growing role of specialised and dedicated verticals, branch expansion in banks etc, the DFS said in a letter addressed to MD and CEO of nationalised banks.
Through the latest revamp of middle management structure, the Finance Ministry has sought to level the playing field among public sector banks (PSBs) and sort out the employee level promotion discrepancies that had crept in, post the mega consolidation exercise leading to 11 PSBs in the country.
Diwali bonanza
This move is expected to reinvigorate the functioning of nationalised banks, enhancing motivation of middle level executives, many of whom were rueing the saturation and lack of growth opportunities within public sector banks.
The Department of Financial Services introduced new framework has substantially enhanced the number of posts of Chief General Managers (CGM), General Managers (GM), Deputy General Managers (DGM) and Assistant General Managers (AGMs) in the 11 nationalised banks.
The number of executives (CGM / GM / DGM / AGM) would now be based on the banks’ business mix as on March 31,2023.
Under the revamped guidelines, the post of CGM (scale VIII) would henceforth be available in all the nationalised banks, below Board level, irrespective of the business mix, the DFS has stipulated.
It maybe recalled that Government had in the year 2019 introduced CGM level post in the banks having a business mix more than ₹10 lakh crore. The ratio of number of CGM :GM was kept at 1:4.
Now Nationalised banks have been placed under two categories based on the business mix as on March 31,2023–Category A: Business Mix of less than ₹10 lakh crore and Category B: Business Mix of ₹10 lakh crore and above.
There would be Four (04) CGMs in Nationalised Banks with a business mix of up to ₹4 lakh crore; Eight (08) CGMs in Nationalised Banks having a business mix between ₹4 to ₹10 lakh crore.
New guidelines
For those Nationalised Banks having a business mix of ₹10 lakh crore and above, there shall be a minimum Ten (10) CGMs and One (01) additional CGM for every increase in business mix up to ₹1 lakh crore, the DFS has said.
At least 50 percent of the total CGM s should be placed at corporate offices for Category A banks, the new guidelines stipulated.
Also now the number of GMs shall be linked to the number of CGMs and the number of DGMs & AGMs would be linked to the number of GMs. The ratio of CGM:GM would be 14: for al category of nationalised banks and the ratio of GM:DGM:AGM shall be 1:3:9 for all category of nationalised banks, DFS has said.
Finance Ministry has also said that the latest methodology of computation of CGMs may be reviewed by DFS in FY27-28 based on the business mix of the banks as on March 31, 2027.
Reacting to the latest Finance Ministry move, a former chairman of a public sector bank noted that the “saturation issue” may still persist despite a significant increase in the middle management posts.
