Ministry of Finance Seeks Clarification from Punjab & Sind Bank Over allegation of Unfair Promotions

Serious questions have been raised over alleged promotions carried out by Punjab & Sind Bank without obtaining mandatory vigilance clearance. Now, the matter reached the Ministry of Finance, Government of India.

In a letter addressed to the bank’s Managing Director & CEO, the Department of Financial Services (DFS) referred to earlier communications on the matter and has now asked the bank to furnish detailed clarifications.

Various allegations have been raised that the Bank did not follow the guidelines in the promotion of senior executives. To favor certain candidates, the minimum length of service was reduced. Moreover, some candidates against whom cases were pending were promoted without obtaining clearance from the Vigilance Department.

The Ministry has specifically sought responses on four key issues:

1. Whether vigilance clearance is mandatory for promotions and, if not, the legal provisions that allow promotions without such clearance.
2. The rationale behind reducing the minimum length of service required for promotions from Scale V to Scale VI during the year 2022-23.
3. Whether similar relaxations were granted in previous years, and if so, copies of Board approvals along with reasons for such relaxations.
4. If no prior relaxations were granted, the justification for the 2022-23 relaxation along with Board approval citing reasons and the impact on the Zone of Consideration.

The letter, signed by Vijay Shankar Tiwari, Under Secretary to the Government of India, indicates that the government is closely monitoring the bank’s internal promotion policies and compliance with vigilance norms.

Complaint filed against promotion issues in Punjab and Sind Bank