Public Sector Banks Set for Leadership Expansion Amid Record Profits

The Finance Ministry is contemplating increasing the number of Chief General Managers (CGMs) in public sector banks due to rising business and profitability. Current government guidelines limit CGMs to one per four General Managers. The proposal aims to support continued growth and address functional needs in light of recent profit surges.

The Finance Ministry is evaluating a proposal to increase the count of Chief General Managers in public sector banks, prompted by their growing business and profitability. Present guidelines, established in 2019, limit one Chief General Manager for every four General Managers.

The substantial improvement in public sector banks' performance, despite pandemic challenges, has led to remarkable business growth and record profits. The Department of Financial Services is reviewing these CGM positions to propel banks toward greater growth opportunities.

With the relaxation of such guidelines under consideration, banks have suggested allowing boards to determine the number of posts based on business needs. An examination of current ratios is underway to enhance functional control and retention of senior officers, amidst booming profitability. State Bank of India led with profits, contributing significantly to industry growth.

(With inputs from agencies.)