In a significant decision aimed at strengthening the banking sector, the Government of India has approved the creation of new senior-level positions in Public Sector Banks (PSBs). This move is expected to enhance the efficiency of nationalized banks, improve asset management, and provide better career opportunities for bank employees.
The decision was discussed in the Rajya Sabha, where Minister of State for Finance, Shri Pankaj Chaudhary, provided details on the newly introduced positions and the revised methodology for computing the number of senior posts in nationalized banks.
New Senior Positions Introduced in Five Public Sector Banks
The government has approved the introduction of the Chief General Manager (CGM) post in five nationalized banks where this role was previously unavailable. These banks are:
✔ Bank of Maharashtra
✔ Central Bank of India
✔ Indian Overseas Bank
✔ Punjab & Sind Bank
✔ UCO Bank
Until now, these banks did not have a Chief General Manager (CGM) post, which serves as an important leadership position just below the Executive Director (ED) level. The CGM post has already been available in other Public Sector Banks (PSBs), and its introduction in these five banks will ensure a more uniform administrative structure across the banking sector. The new CGM positions in these banks will be introduced from October 2024 onwards.
Revised Structure for Senior-Level Positions
Apart from introducing CGM posts, the government has also revised the methodology for calculating the number of senior-level positions in PSBs. This revision affects the following positions:
- Chief General Manager (CGM)
- General Manager (GM)
- Deputy General Manager (DGM)
- Assistant General Manager (AGM)
The number of these posts has been determined based on the business size of each bank as of March 31, 2023. The revision aims to ensure that banks have the right leadership structure to manage their operations efficiently.
No. of CGM GM DGM AGM Senior Level Positions in Public Sector Banks
Let’s have a look at the number of posts – how many CGM, GM, DGM, AGM posts are available in different banks. The maximum number of posts are available in Punjab National Bank and Bank of Baroda. The number of posts vary according to the size of business of Bank.
| Bank Name | CGM | GM | DGM | AGM |
|---|---|---|---|---|
| Punjab & Sind Bank | 4 | 16 | 48 | 144 |
| Bank of Maharashtra | 8 | 32 | 96 | 288 |
| UCO Bank | 8 | 32 | 96 | 288 |
| Indian Overseas Bank | 8 | 32 | 96 | 288 |
| Central Bank of India | 8 | 32 | 96 | 288 |
| Bank of India | 12 | 48 | 144 | 432 |
| Indian Bank | 11 | 44 | 132 | 396 |
| Union Bank of India | 20 | 80 | 240 | 720 |
| Canara Bank | 21 | 84 | 252 | 756 |
| Punjab National Bank | 22 | 88 | 264 | 792 |
| Bank of Baroda | 22 | 88 | 264 | 792 |
This new structure will ensure that banks have sufficient leadership at different levels to handle their growing operations effectively.
How Will This Decision Benefit Banks?
The creation of new senior positions is expected to bring several key benefits to the banking sector. These include:
✅ Better Management and Supervision
With more CGMs, GMs, DGMs, and AGMs, banks will be able to manage their operations more effectively. The presence of senior officers in leadership roles ensures that decision-making processes are streamlined, and policies are implemented efficiently.
✅ Improved Monitoring of Financial Health
Having more senior officials will help banks closely monitor important financial aspects such as loan disbursements, asset quality, and capital adequacy. This will lead to better risk management and financial stability.
✅ Stronger Career Growth Opportunities for Bank Employees
With additional senior positions being created, bank employees will have more opportunities for promotions and career advancement. This move will motivate employees and improve job satisfaction within the banking sector.
✅ Enhanced Customer Service and Banking Operations
A well-structured leadership system allows banks to provide better customer service and improve overall banking operations. With better management, banks can ensure faster loan processing, better handling of customer queries, and smoother banking transactions.
Implementation and Recruitment Plan
The newly created positions will be implemented from April 1, 2025. However, banks will not fill all positions at once. Instead, a gradual recruitment process will take place over the next three years to ensure smooth implementation.
The government has directed banks to release the vacancies in a phased manner, ensuring equal distribution of promotions over the next few years. This will help in:
🔹 Avoiding sudden disruption in the banking workforce.
🔹 Ensuring that promotions are given fairly over a period of time.
🔹 Allowing banks to prepare and train employees for senior roles.
Why Was This Change Needed?
The Indian banking sector has been growing rapidly, with increasing loan disbursements, rising customer demand, and digital banking advancements. To keep up with this growth, banks need strong leadership and better management structures.
Earlier, the number of senior positions was not aligned with the expanding business size of banks. This led to workload imbalances, slower decision-making, and operational inefficiencies.
By introducing new CGM positions and revising the number of GMs, DGMs, and AGMs, the government is ensuring that banks have the right number of senior officials to handle operations efficiently.
This move is also in line with the government’s efforts to:
✔ Strengthen public sector banks and make them more competitive.
✔ Improve the financial health of banks by ensuring better monitoring of assets and loans.
✔ Support economic growth by making banking services more efficient.
The government’s decision to introduce new senior-level positions in public sector banks is a major step toward strengthening India’s banking system. By ensuring better management, improved supervision, and stronger leadership, this move will help banks become more efficient, financially stable, and customer-friendly.
With the new Chief General Manager (CGM) positions and revised senior-level post structure, nationalized banks are expected to see better operational efficiency, improved risk management, and stronger career growth opportunities for employees.
This change will not only benefit bank employees but also enhance banking services for customers across India, ensuring that the public sector banking system remains strong, efficient, and well-managed in the years to come.
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