Board Positions lying Vacant in Public Sector Banks
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India’s public sector banks (PSBs) are facing serious issues in maintaining proper corporate governance standards. Many of the public sector banks in India have not filled key positions on their boards for several years.
Major Vacancies in Top Banks
- Bank of Baroda: The bank should ideally have 16 directors, but right now it has only 10 directors. Important posts like Chairman and Chartered Accountant (CA) Director are lying vacant.
- Central Bank of India: The board has eight directors, but key positions including Chairman, Managing Director (MD) & Chief Executive Officer (CEO), along with five other posts, are vacant.
- Union Bank of India: The bank is currently operating without an MD & CEO.
- Indian Bank and Punjab & Sind Bank: Both banks are missing CA Director and Chairman positions.
| Bank | Total Directors on Board | Total Vacancies |
|---|---|---|
| State Bank of India | 12 | 3 |
| Bank of Baroda | 10 | 6 |
| Punjab National Bank | 9 | 7 |
| Central Bank of India | 8 | 7 |
| Indian Bank | 10 | 6 |
| Bank of Maharashtra | 6 | – |
| Punjab & Sind Bank | 7 | 7 |
| Indian Overseas Bank | 10 | 4 |
These vacancies are worrying because directors play a very important role in decision-making, strategy, and financial oversight of banks.
Why Are the Vacancies Not Filled?
Banks say that the vacancies have not been filled yet as the government has not given clearance.
Nearly half of the board-level positions in PSBs have been vacant for the last 10 years.
Positions for workmen directors and non-workmen directors have also been vacant for almost a decade.
Vacancies at such a high level affect the functioning, transparency, and accountability of public sector banks. Without strong boards, banks may struggle to make effective decisions, ensure compliance, and maintain the trust of customers and investors.