Review of guidelines on the number of posts of Chief General Managers (CGMs) / General Managers (GMs) / Deputy General Managers (DGMs) /Assistant General Managers (AGMs) in the Nationalised Banks: DFS Order dated 21.10.2024
eF. No.2/19/2004-IR (आई.आर.)
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep Building, 3rd floor
Parliament Street, New Delhi – 110 001
21 October 2024
To
The Managing Director and CEO,
All Nationalised Banks.
Subject: Review of guidelines on the number of posts of Chief General Managers (CGMs) / General Managers (GMs) / Deputy General Managers (DGMs) /Assistant General Managers (AGMs) in the Nationalised Banks — regarding.
Madam / Sir,
Please refer to this Department’s letter of even number dated 22.02.2016 vide which the banks were communicated the revised formula, based on business mix as on 31.3.2015, for calculation of the number of posts of GMs in the Nationalised Banks. The ratio of number of GM:DGM:AGM was kept as 1:3:9.
2. This Department. with the approval of the Finance Minister, vide letter dated 30.08.2019 had conveyed the ‘no objection’ of the Government to the Nationalised Banks to introduce CGM level post in the banks having a business mix more than Rs.10 lakhs crore. The ratio of number of CGM:GM was kept as 1:4.
3. Taking into consideration the requests received from various banks and also the high pace of digitalization, the growing role of specialized and dedicated verticals, branch expansion etc., in banks, the department has reviewed the methodology of computation of CGMs and the following are decided:
(i) The post of CGM (Scale-VIII) shall henceforth be available in all the Nationalized Banks, below board level, irrespective of its business mix;
(ii) The Nationalised Banks shall be placed in two (02) categories based on the business mix as on 31.03.2023; (Category A: Business Mix of less than Rs. 10 lakh crore) and (Category B: Business Mix of Rs.10 lakh crore & above);
(iii) There shall be Four (04) CGMs in Nationalised Banks with a business mix of up to Rs. 4 lakh crore; Eight (08) CGMs in Nationalised Banks having a business mix between Rs. 4 to 10 lakh crore and for those Nationalised Banks having a business mix of Rs. 10 lakh crore & above, there shall be a minimum Ten (10) CGMs and One (01) additional CGM for every increase in business mix up to Rs.1 lakh crore;
(iv) At least 50% of the total CGMs should be placed at corporate offices for Category A banks.
4. This department has further reviewed the method of computation of the number of CGMs / GMs / DGMs / AGMs and the following are decided:
(i) The number of executives (CGM /GM / DGM / AGM) shall be based on the banks’ business mix as on 31.03.2023;
(ii) The number of GMs shall be linked to the number of CGMs and the number of DGMs & AGMs shall be linked to the number of GMs;
(iii) The ratio of CGM:GM shall be 1:4 for all category of nationalised banks and the ratio of GM:DGM:AGM shall be 1:3:9 for all category of nationalised banks;
(iv) Based on the methodology stated above, the number of CGMs, GMs, DGMs & AGMs shall be as under;
(v) The banks have to strictly adhere to the numbers as indicated in above table. However, the banks may use their discretion to be prudent and conservative in this regard and may fix the number of CGMs even below the prescribed number. Similarly, the number of GMs, DGMs and AGMs may also be fixed below the said ratio as per the actual requirement and in the best interest of the bank.
(i) The ceiling on the number of executives must include executives posted at the business units that contribute directly to the business / profitability of the bank (i.e.) no vacancy to be created against the executive placed at units that are contributing directly to the bank’s business / profitability (e.g. Executives placed at overseas branches).
(ii) Executive posted at other organisations such as RRBs / Subsidiaries / Joint ventures / Associates / Government offices, including, inter-alia, CBI, IBBI, CVCs, DFS, CERSAI, DRT, etc. to be treated as over and above the prescribed ceiling on the number of executives arrived as per the proposed methodology.
5. It is to be noted that the revised number of vacancies shall be effective only from 01.04.2025. The additional vacancies, thus created due to revision in the number of officers, shall be released in a staggered manner (equal distribution up to extent possible) in 3 years for proper cadre management.
6. The methodology may be reviewed by this Department in the FY 2027-28 based on the business mix of the Banks as on 31.03.2027.
7. The banks are advised to take appropriate action in the matter with the due approval of their respective Boards.
8. This has the approval of the Hon’ble Finance Minister.
Yours faithfully,
(Vijay Shankar Tiwari)
Under Secretary to the Govt. of India
Tel: 011- 2336 2349
Email: ir[at]nic.in
Copy to: (i) All Government Nominee Directors
(ii) Website of DFS
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