In a significant move aimed at streamlining executive management in nationalized banks, the Department of Financial Services has issued revised guidelines for the number of Chief General Managers (CGMs), General Managers (GMs), Deputy General Managers (DGMs), and Assistant General Managers (AGMs). These changes follow a review considering the rapid pace of digitalization, the growing role of specialized verticals, and branch expansion in the banking sector.
New Executive Structure Introduced
The revision updates the methodology for calculating executive posts across nationalized banks. According to the guidelines, the post of CGM (Scale-VIII) will now be available to all nationalized banks, regardless of their business mix. This marks a shift from the earlier policy, which restricted CGM posts to banks with a business mix exceeding Rs. 10 lakh crore.
Categorization of Banks Based on Business Mix
Nationalized banks are now divided into two categories based on their business mix as of March 31, 2023:
- Category A: Banks with a business mix of less than Rs. 10 lakh crore.
- Category B: Banks with a business mix of Rs. 10 lakh crore and above.
For Category A banks, there will be up to four CGMs for those with a business mix of up to Rs. 4 lakh crore, and up to eight CGMs for those with a business mix between Rs. 4 to 10 lakh crore. In Category B banks, there will be a minimum of 10 CGMs, with an additional CGM added for every Rs. 1 lakh crore increase in business mix.
Executive Ratios and Staffing Guidelines
The ratio of CGMs to GMs is set at 1:4 across all nationalized banks, with the ratio of GMs to DGMs and AGMs being 1:3:9. Banks are required to adhere strictly to these staffing levels but have been granted some discretion to adjust numbers based on actual requirements and in the bank’s best interest. Additionally, at least 50% of CGMs in Category A banks must be stationed at corporate offices to enhance leadership at headquarters. Number of CGM, GM, DGM, AGM in Banks will be as per list below.
| BANKS | CGM | GM | DGM | AGM |
| Category A banks | ||||
| 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 |
| Category B banks | ||||
| Indian Bank | 11 | 44 | 132 | 396 |
| Bank of India | 12 | 48 | 144 | 432 |
| 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 |
Ceiling on Executive Posts
A cap has been placed on the number of executives based on the bank’s business mix, ensuring that only those contributing directly to the business or profitability will be counted towards the ceiling. Executives posted in non-business areas, such as government organizations, subsidiaries, or regulatory bodies like the CBI and CVC, will be considered outside this limit.
Staggered Implementation and Future Review
The new guidelines, which take effect on April 1, 2025, will be implemented gradually over three years to ensure smooth management of the officer cadre. The department plans to review this structure again in the financial year 2027-28, based on the business mix of banks as of March 31, 2027.
Approval from the Finance Minister
The revised guidelines have been approved by the Hon’ble Finance Minister, and banks are advised to take necessary action following board approval to implement the changes effectively.
