The Financial Services Institutions Bureau (FSIB) has announced a significant departure from traditional procedures by inviting applications from private sector candidates for executive director positions in nationalised banks during the current financial year. According to reports from The Hindu BusinessLine and ETBFSI, this marks the first time FSIB would consider private sector candidates for more than half a dozen vacancies expected to be created during FY 2026-27. The FSIB serves as the headhunter for directors of state-owned banks and financial institutions, making this inclusion a notable shift in the selection process.
Private sector candidates must meet specific experience criteria to be considered for executive director positions. As reported by The Hindu BusinessLine and ETBFSI, applicants from the private sector should have at least 18 years of experience, with 12 years of banking experience, including 3 years at the highest level below board level held on a substantive basis. Candidates who are not from nationalised banks shall be considered as private candidates, with the FSIB requiring them to provide an organogram of the bank where they have the highest level of experience below board level, clearly indicating their position in the organisation hierarchy. The organogram(s) must be submitted along with the resume.
For candidates from public sector banks, the FSIB has established different eligibility criteria. According to the public notice reported by The Hindu BusinessLine and ETBFSI, applicants from public sector banks should have a combined service of 4 years at the Chief General Manager and General Manager levels in nationalised banks. The FSIB has also implemented specific disqualification criteria, stating that candidates holding the post of Chief Vigilance Officer (CVO) would not be considered for appointment to the executive director position. Additionally, if an officer has faced two or more major penalties in his/her career, he/she shall not be eligible to apply for the position of executive director in nationalised banks. The FSIB has also introduced additional disclosure requirements, stating that penalties imposed, including minor penalties, on the applicants during the last 10-year period shall also be disclosed.
The selection process will follow a structured approach with multiple stages. As reported by The Hindu BusinessLine and ETBFSI, selection will be based on shortlisting and personal interview, with applications received being scrutinised and shortlisted for interview based on experience and eligibility conditions. The FSIB will conduct final selection of candidates, with allocation of banks being done on merit-cum-preference basis for the anticipated vacancies. For unanticipated vacancies that may arise during FY 2026-27, the FSIB will fill these positions through the panel of candidates in the waiting list created through this selection process.
