The Financial Services Institutions Bureau (FSIB), the body formed by the government to select the CEOs and Directors of public sector banks, insurance companies and financial institutions, will select top officials of banks via a grooming process under a leadership development programme.
The FSIB has asked the Indian Banks’ Association (IBA) to appoint an institution or firm to design and deliver a leadership development programme for PSU banks (PSBs). The programme aims to groom business leaders of the PSBs who should be ready to assume top management and board level positions in PSBs and to drive long-term sustainable business in a competitive market place, the IBA said in a request for proposal (RFP). The firm which will design and execute the programme will be selected by the IBA through a bidding process.
According to IBA, the objective is to develop future generation of leaders who are digitally savvy, strategic thinkers with capability to build highly collaborative teams and create a customer centric organisation that thrives in a very dynamic competitive environment. “Accordingly, to accelerate leadership development in PSBs in India and support the top management of PSBs through their professional development journey, the Bureau proposes to launch a Leadership Development Programme,” the IBA said.
The programme will up-skill around 75 participants in the senior management like Chief General Managers, General Managers and Deputy General Managers every year. “Selected bidder will have to work with key stakeholders from the Bureau and the PSBs to decide on the ideal pool of participants each year as well as administer the shortlisting criteria on a wider pool to select 75 participants for the programme,” the IBA said. The proposed firm should have capability to design and deliver a training programme for senior officers of PSU banks that can be delivered through three modes — online as e-learning modules, online through live webinars, meetings and through in-person mode.
The programme fee per participant quoted by the firm/ institution will be fixed for three years and should include everything else (including expenses on usage of trademarks, patents, licenses, all associated fees of usage of facilities and other conveniences as required for the programme, boarding and lodging, overseas stay if any).
The erstwhile Banks Board Bureau used to invite applications from senior managers and select suitable candidate through interviews whenever the CEO position in a PSU bank fell vacant. Senior officials are not properly groomed to take up top positions in a PSB This will change if the FSIB programme becomes a success, banking sources said.
The Appointments Committee of the Cabinet (ACC) recently approved the government resolution for establishing the FSIB in place of the BBB which will now select the chiefs of public sector banks and insurance companies.
The selection process of top officials of public sector insurance companies was in limbo in the wake of the Delhi High Court decision to strike down the power of Banks Board Bureau to select directors and chiefs of PSU insurers.
The ACC also approved the appointment of Bhanu Pratap Sharma, former Chairman, BBB, as initial Chairperson of FSlB for a term of two years from the date of notification of government resolution or until further orders, according to a notification issued by the Department of Personnel & Training.
One of the mandates given to the FSIB by the government is to help PSBs develop a robust leadership succession plan for top management positions that would arise in future through appropriate HR processes.