Finance Minister approves raising of posts of CGMs public sector banks

New Delhi, Oct 21 (PTI) Finance Minister Nirmala Sitharaman has approved the creation of Chief General Manager post (CGM), below board level, in five more nationalized banks including Bank of Maharashtra, Central Bank of India, and UCO Bank.

Besides, Indian Overseas Bank and Punjab & Sind Bank would now elevate their General Managers (GM) to CGMs.

Prior to this, CGM posts were available in six out of 11 nationalized banks.

"While creating the said post, the Finance Minister has also approved the increase in the existing number of CGMs in the banks that already have CGM-level posts. This step will significantly enhance the administrative structure and efficiency of banks," the finance ministry said in a statement.

CGM post acts as an administrative and functional layer between the General Manager (GM) and the Executive Director (board level post) in the Nationalized Banks, it said.

The increase of CGM posts will enhance the capability of banks to better monitor critical positions such as digitalisation, cyber security, fin-tech, risk, compliance, rural banking, financial inclusion etc., and sub-domains like retail credit, agri credit, MSME Credit etc., thereby leading to more targeted strategies and improved overall performance, it said.

An increase in the number of CGMs will further enable the banks to have better control and supervision thereby resulting in improved asset management and operational efficiency, it said.

The number of posts has been revised based on the business mix of the banks as on March 31, 2023, with the ratio of one CGM for every four GMs, it said.

This creation/increase will not only benefit the GMs elevating to the post of CGM but also benefit the immediate lower levels of executives, below GM level posts i.e. Deputy General Managers (DGM) and Assistant General Managers (AGM), as with the increase of 1 CGM level post, there will be an increase in 4 GM posts, 12 DGM posts and 36 AGM posts, it said.

With the revision, it said, the number of CGM posts in all the 11 Nationalised Banks has been increased from 80 to 144.

Accordingly, it said, the number of GM posts has been revised from 440 to 576, the number of DGM posts from 1,320 to 1,728 and the number of AGM posts from 3,960 to 5,184. Post-enhancement at the senior management level will lead to increased oversight and will result in better identification and mitigation of risks, especially in complex financial environments.

This significant step has been taken keeping in view the demands being received from various banks and also due to the substantial growth in business, verticals, domains and branch expansions of the banks that require a dedicated pyramid of executives at the senior level. PTI DP MR MR