To step up oversight given the substantial business growth, finance minister Nirmala Sitharaman has approved an increase in the number of chief general manager (CGM) posts in nationalised banks to 144 from 80.
Accordingly, the number of general manager (GM) posts has been revised from 440 to 576, the number of deputy GM posts from 1,320 to 1,728 and the number of assistant GM posts from 3,960 to 5,184.
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“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 environment,” the finance ministry said in a statement.
“The finance minister has approved the creation of CGM post, below board level, in five more nationalised banks (i.e.) Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and UCO Bank.”
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Prior to this, CGM posts were available in six out of eleven nationalised banks. While creating the post, the finance minister 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.
A CGM acts as an administrative and functional layer between the GM and the Executive Director (board-level post) in nationalised banks. The increase of CGM posts will enhance the capability of banks to better monitor critical positions such as digitalisation, cyber security, fintech, 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, the ministry said.
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Increase in the number of CGMs will further enable the banks to have a better control and supervision thereby resulting in improved asset management and operational efficiency, it added.
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