New Delhi, 18 November: The central government has increased the maximum tenure for Chief Executive Officers (CEOs) and Managing Directors (MDs) of public sector (PSU) banks to ten years. This step of the government will help in retaining the best talent in the banking sector for a longer period of time.
According to a notification issued by the government on November 17, the term of appointment of CEOs and MDs of public sector banks has been increased from the earlier 5 years to ten years now. Earlier, the managing director or executive director of public sector banks used to get a maximum tenure of five years or till the age of 60 years (whichever is earlier). The same criterion was applicable to whole-time directors of public sector enterprises.
According to the notification, the initial tenure of whole-time directors including managing directors should not exceed 5 years. It can be further extended but this too should not exceed ten years including the initial tenure. This decision of the government will help the banks to retain such talent who have reached the position of full-time directors in the age group of 45-50 years.
