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MUMBAI, Feb. 3

THE Government appears to have given a go-by to the `seniority criteria' in the appointment of the chairman and managing director (CMD) in public sector banks.

In the appointment process of the CMDs of Vijaya Bank and Syndicate Bank, the Government has decided to overlook two of the seniormost candidates - Mr Michael Bastian, Executive Director of Vijaya Bank, and Mr M.S. Kapur, Executive Director of Syndicate Bank - and has shortlisted Mr A.K. Khandelwal, Executive Director, Bank of Baroda, and Mr M. Venugopalan, Executive Director, Union Bank of India, for the two posts.

While Mr Khandelwal has a little over five years of service remaining, Mr Venugopalan has around two years. Mr Bastian has around two-and-half years and Mr Kapur has a little over three years remaining, banking sources said.

Six candidates were called for the interview of the post of CMD - Mr Bastian, Mr Kapur, Mr O.N. Singh, Executive Director of Bank of India, Mr V.K. Chopra, Executive Director of Oriental Bank of Commerce, Mr Kandelwal and Mr Venugopalan. According to bank officials, this is the first instance where interviews were called for the selection of public sector bank CMDs.

The selection committee comprising Mr G.P. Muniappan, Deputy Governor, Reserve Bank of India, Mr S.K. Purkayastha, Additional Secretary, Finance, and Mr P. Kotaih, former chairman of Nabard, interviewed the candidates on December 28. Bankers said that by sidestepping the route of appointing the seniormost for the CMD's post and calling six candidates for interview, the Government was trying to have a varied range of eligible candidates.

"This is the first time that there has been an interview for the post of CMD. Most bankers, when they get to the post of the ED, become complacent as they are assured of a CMD's post. By introducing an interview process, there will be more competition and the right candidate will get selected," said one senior bank official.

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