The Government of India has authorized the establishment of new senior-level roles in Public Sector Banks (PSBs), a major move intended to bolster the banking industry. It is anticipated that this action will improve asset management, increase the effectiveness of nationalized banks, and give bank workers better career options.
Shri Pankaj Chaudhary, the Minister of State for Finance, gave information on the newly created roles and the updated process for determining the number of senior positions in nationalized banks during the Rajya Sabha discussion of the decision. In five nationalized banks where the position was previously unattainable, the government has authorized the creation of the Chief General Manager (CGM) position. These financial institutions are:
1. Bank of Maharashtra 2. Central Bank of India 3. Indian Overseas Bank 4. Punjab & Sind Bank 5. UCO Bank
Until now, these banks did not have a Chief General Manager (CGM) post, which serves as an important leadership position just below the Executive Director (ED) level.
The CGM post has already been available in other Public Sector Banks (PSBs), and its introduction in these five banks will ensure a more uniform administrative structure across the banking sector. The new CGM positions in these banks will be introduced from October 2024 onwards.
Apart from introducing CGM posts, the government has also revised the methodology for calculating the number of senior-level positions in PSBs. This revision affects the following positions:
Chief General Manager (CGM), General Manager (GM), Deputy General Manager (DGM), Assistant General Manager (AGM)
The number of these posts has been determined based on the business size of each bank as of March 31, 2023. The revision aims to ensure that banks have the right leadership structure to manage their operations efficiently.
Let’s have a look at the number of posts – how many CGM, GM, DGM, AGM posts are available in different banks. The maximum number of posts are available in Punjab National Bank and Bank of Baroda. The number of posts vary according to the size of business of Bank.
| Bank Name | CGM | GM | DGM | AGM |
|---|---|---|---|---|
| Punjab & Sind Bank | 4 | 16 | 48 | 144 |
| Bank of Maharashtra | 8 | 32 | 96 | 288 |
| UCO Bank | 8 | 32 | 96 | 288 |
| Indian Overseas Bank | 8 | 32 | 96 | 288 |
| Central Bank of India | 8 | 32 | 96 | 288 |
| Bank of India | 12 | 48 | 144 | 432 |
| Indian Bank | 11 | 44 | 132 | 396 |
| Union Bank of India | 20 | 80 | 240 | 720 |
| Canara Bank | 21 | 84 | 252 | 756 |
| Punjab National Bank | 22 | 88 | 264 | 792 |
| Bank of Baroda | 22 | 88 | 264 | 792 |
This new structure will ensure that banks have sufficient leadership at different levels to handle their growing operations effectively.
The Indian banking sector has been growing rapidly, with increasing loan disbursements, rising customer demand, and digital banking advancements. To keep up with this growth, banks need strong leadership and better management structures.
Earlier, the number of senior positions was not aligned with the expanding business size of banks. This led to workload imbalances, slower decision-making, and operational inefficiencies.
By introducing new CGM positions and revising the number of GMs, DGMs, and AGMs, the government is ensuring that banks have the right number of senior officials to handle operations efficiently.
This move is also in line with the government’s efforts to:
1. Strengthen public sector banks and make them more competitive.
2. Improve the financial health of banks by ensuring better monitoring of assets and loans.
3. Support economic growth by making banking services more efficient.
The government’s decision to introduce new senior-level positions in public sector banks is a major step toward strengthening India’s banking system. By ensuring better management, improved supervision, and stronger leadership, this move will help banks become more efficient, financially stable, and customer-friendly.
With the new Chief General Manager (CGM) positions and revised senior-level post structure, nationalized banks are expected to see better operational efficiency, improved risk management, and stronger career growth opportunities for employees.
This change will not only benefit bank employees but also enhance banking services for customers across India, ensuring that the public sector banking system remains strong, efficient, and well-managed in the years to come.
