A big reform has been done by the Government of India related to the public sector banks in India. The Government has opened the door of top posts to the private sector.
All MD&CEO posts in nationalised banks, one Managing Director post in the State Bank of India, and one Executive Director post in large nationalised banks have been opened for private sector candidates. This has been done with a view to widening the talent pool and aligning senior management appointments in PSBs with global best practices.
Earlier, the post of Managing Director and Chief Executive Officer (MD&CEO) in four large nationalised banks (Bank of Baroda, Bank of India, Canara Bank and Punjab National Bank) was open to candidates from public sector and private sector.
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This has been officially confirmed by the Government of India. The issue was raised in Parliament, where Shri Malaiyarasan D asked the Finance Minister whether the government is opening the doors of top executive positions in public sector banks to the private sector. In reply, the government said yes, and clarified that MD & CEOs of public sector banks can now be appointed from the private sector. Shri Malaiyarasan D also asked whether the government is planning to privatise public sector banks. The government replied that there is no proposal to privatise public sector banks at present.
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How is MD&CEO selected?
The Government of India has created an organisation called the Financial Services Institutions Bureau for the selection of candidates to the post of MD&CEO. This organisation releases notifications for recruitment, conducts interviews, and recommends names of eligible candidates for appointment as Whole-Time Directors on the Boards of Public Sector Banks.
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As of now, typically, Executive Directors (EDs) from public sector banks apply for the post of MD&CEO in other banks, and FSIB selects one of them. For example: Recently, FSIB released a notification for the recruitment of candidates to the post of MD&CEO of Canara Bank. 17 candidates applied for this post, and FSIB interfaced with 17 candidates on December 22, 2025. FSIB recommended Shri Brajesh Kumar Singh for the position of MD & CEO in Canara Bank. Shri Brajesh Kumar Singh is currently working as ED in Indian Bank – a public sector bank.
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