Key Points
State-run banks have urged the government to relax the cap that stops them from hiring more people for middle- and senior-level management positions, saying it will boost efficiency, people in the know told ET...
The government has put a cap on the number of chief general managers, general managers and assistant general managers a state-run bank can have, based on their business size..
For instance, a bank with an annual business size of 1.6 lakh crore can have a maximum of 12 general managers...
"We have had discussions with the government about making PSBs' (public sector banks) functioning more efficient and effective, given the growth opportunities and stiff competition from private sector peers," said a bank executive aware of the development..
In 2019, after the merger of 10 nationalised banks created four large lenders, the government allowed banks with a turnover of 10 lakh crore and more to create a new post of chief general manager, or CGM..
