In a move aimed at enhancing oversight and operational efficiency, Finance Minister Nirmala Sitharaman has approved a significant increase in senior management posts across nationalised banks. The number of Chief General Manager (CGM) posts has been increased to 144 from the existing 80, while the number of General Manager (GM) positions has been raised to 576 from 440. Similarly, Deputy General Manager (DGM) posts have been increased to 1,728 from 1,320, and Assistant General Manager (AGM) posts have been revised to 5,184 from 3,960.
The finance ministry stated that the expansion in the senior management structure will result in better identification and mitigation of risks, particularly in a rapidly evolving and complex financial environment. ‘Post-enhancement at the senior management level will lead to increased oversight and result in better identification and mitigation of risks,’ the ministry said in a statement.
As part of this initiative, CGM posts will be introduced in five more nationalised banks: Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, and UCO Bank. Prior to this, CGM positions were available in only six out of eleven nationalised banks. Existing CGM positions in these six banks will also see an increase.
A CGM serves as a critical administrative layer between the General Manager and the Executive Director in nationalised banks. The increase in CGM posts is expected to strengthen banks’ capabilities in overseeing key areas such as digitalisation, cyber security, fintech, compliance, and risk management, as well as important sub-domains like retail credit, agricultural credit, and MSME credit.
This expansion in leadership roles is also aimed at improving asset management and operational efficiency. ‘The increase in the number of CGMs will further enable better control and supervision, resulting in improved asset management and overall performance of banks,’ the ministry added.
The government’s decision comes in the wake of the substantial growth seen in the banking sector and is expected to enhance the administrative framework and operational effectiveness of nationalised banks.
