AIBOC CIRCULAR NO. 70 DATED 10.09.09

AIBOC has issued its circular no. 70 on the proposal of the Central Government to appoint a Civil Servant as Chairman and Managing Director of Punjab National Bank.
The same is published here for our readers.
CIRCULAR NO: 70                                  10th September, 2009
TO ALL AFFILIATES/MEMBERS:
APPOINTMENT OF CHAIRMAN AND MANAGING DIRECTOR OF PUNJAB NATIONAL BANK - GOVERNMENTS’ MOVE OPPOSED
We are concerned to note certain developments in regard to the appointment of the Chairman and Managing Director of PNB – wherein the Government is proposing to appoint a Civil Servant to the coveted post, thereby causing a serious dent in the career opportunity of senior executives in the banks apart from the fact that the banking industry is a sensitive one and requires an insider with a thorough professional knowledge and expertise to head a major institution like that of Punjab National Bank. We have to-day sent a communication to the Prime Minister, Government of India, New Delhi. A copy of our communication is enclosed.
2. All our affiliates/members are requested to await further developments in the matter.
Communication sent to Hon'ble Prime Minister
No.1454/183/09                                            10.09.09
To,
The Hon’ble Prime Minister,
Government of India,
South Block, Parliament House,
New Delhi.
Dear Sir,
APPOINTMENT OF CHAIRMAN AND MANAGING DIRECTOR OF PUNJAB NATIONAL BANK – A PROFESSIONAL BANKER TO BE APPOINTED
We are surprised to know that the Government is considering to appointment an Officer from the Government as the Chairman and Managing Director of Punjab National Bank in contravention of the established convention of appointing a senior Executive Director or the CMD of other banks to this prestigious position thereby creating a lot of heart burn amongst the Officers’ fraternity in the banking industry. The banking industry has been witnessing spectacular changes in the business environment and the public sector banks are required to face tremendous competition in the current scenario. The Bank Officers are able to withstand these pressures due to their experience and capability of handling the changing environment in the financial sector and taking on the competition from the Private and Foreign Banks in an effective manner. The Officers in the Banking Industry look for advancement of their career in the industry itself since they can specialize and compete amongst themselves to reach the top slots in the banking industry. The present move of the Government is bound to hurt the sentiments of the senior executives who have been languishing to reach the position of the Chairman and Managing Director since the positions are few and the competent people to fill those positions are in hundreds.
2. The Confederation has been holding a strong view as to the appointment of outsiders to the top positions of the banks since the banking is a delicate matter and needs a thorough professional knowledge of the banking as it is done in the present day context. There is no need to place a Civil Servant to work in this position creating a serious heartburn amongst the senior executives in the Banking Industry. When there are plenty of talents available within the banking industry; appointing a Civil servant or a bureaucrat will only harm the chances of promotions of several senior executives in the Banking Industry. Whenever a senior position in the banks is filled it results in the promotional opportunities down the line thereby providing a chance for several officers to go up in the ladder of their career. In view of the banking industry passing through severe constraints as regards the expansion in number of vacancies at the top level, the scarce opportunity cannot be further reduced to the disadvantage of the several senior executives in the banking industry.
3. The Confederation is seriously concerned about these developments and conveys its strong protest against the move of the Government which is bound to create unnecessary irritations in the industrial relations in the banks. We therefore request you to kindly take note of the sentiments of thousands of Officers working in the banking industry and desist from the proposed move in the interest of the harmonious industrial relationship atmosphere that is prevailing in the banking industry.
4. Please treat the matter as urgent.