Friday, January 06, 2012

Public Sector Banks are having more GMs than Working Officers

During last five to ten years bank management has added more General Managers and less officers. This is why number of officers in Administrative Officers have gone up, administrative cost has gone up and expenses on top executives including salary cost have gone up more than number of officers in branches, expenses on branches and cost of establishment on staff working in branches.

After CBS implementation work load has sharply come down in administrative offices and real work load has been added to branches with addition of new business like insurance, mutual fund, demat account etc.Now with click of mouse top officials know all activities of branches and make follow up on phone with the help of telephone operators (senior officials ).

Unfortunately branches are facing acute shortage of manpower and administrative offices are having surplus staff . Branch officials have to spend more time on attending phone of higher offices than on customers and in growth of real business.

Due to this mismatch quantum of bad assets have grown up and more and more field officials have been subjected to punishment for fault of top officials who give instruction on phone and who build pressure on field functionaries to take bad decisions. 

It is expected new guideline will change the style of functioning and help in bringing about some improvement. 

F. No. 2/19/2011-IR
Government of India
Ministry of Finance Department of Finance Service

Jeevan Deep Sansad Marg
New Delhi-110001
Date the December 02,2011
CEOS of all Public Sector Banks 

Subject : Posts of General Managers/Deputy General Managers/
Asstt. General Managers in Public Sector Banks

1. This Department had vide circular Nos. 2/19/2004-IR dated 19th August, 2005 and 31st July, 2007, laid down the guidelines for the creation of posts of GMs. With the passage of time, due to changed business scenario and considering the valuation at current prices, these norms have become obsolete. Secondly, the business scenario has changed with Public Sector Banks investing considerable amounts in technological advancement and also the core banking solution is now in place.

2. It has also been noticed that over the years some mismatch has developed in the number of posts at senior positions and at the immediate feeder channels, which is creating difficulties in proper manpower management.

3. Draft guidelines No.4/11/1/2011-IR dated 2nd November, 2011 were circulated by the Department on this subject to all Public Sector Banks. Comments of PSBS have been received on the draft guidelines and have been examined in this Department. Based on the feedback from PSBs, in supersession of all previous circulars on the aforesaid subject, it has been decided to issue the following guidelines.


Business Number of GMS
Up to business of Rs.1,20,000 crores Number of GMS is 12
Beyond business of Rs.120,000 crores One additional GM for every Rs.15000 crores

The number of General Managers in Banks as on date as per new guidelines will be as under:

Name of the Bank Business mix as on 31.3.2011 No. of GMs now proposed
Punjab and Sind Bank 102556 12
Dena Bank 109373 12
Bank of Maharashtra 114332 12
Vijaya Bank 122470 12
United Bank of India 131779 12
Andhra Bank 164310 15
Indian Bank 181530 16
Corporation Bank 203598 17
Allahabad Bank 226458 19
OBC 235893 19
Syndicate Bank 243946 20
UCO Bank 245839 20
Indian overseas Bank 259020 21
Central Bank of India 310763 21
Union Bank of India 355483 27
Canara Bank 506440 37
Bank of India 515040 38
Bank of Baroda 536765 39
Punjab National Bank 555006 41
Total 410

(ii) In addition to above, there shall be one additional post of GM as CVO.

(iii) Besides this, Bank can create one post of GM (IT) in addition to the above, provided the Bank has engaged an officer from outside on the basis of lateral entry for the purpose, at the level of GM.

(iv) The ceiling will not include GM level officers to overseas branches by the banks as per need based and with the approval of the Board.

(v) Number of GMS which would be deployed in RRBs/Subsidiaries would be over and above the ceiling.

(vi) A ratio of 1:3:9 shall be prescribed for General Managers, Deputy General Managers and Asstt. General Managers respectively. (Number of DGMs to be three times the number of GMs and number of AGMs to be three time the number of DGMs.) Number of posts of DGMs and AGMs already existing which are over and above the number of DGMs and AGMs shall continue till the desired ratio is achieved.

(vii) Banks, where the GMs already in position are over and above the GMs as per para (i) above, will be allowed to continue with the higher number till they reach the required level of business or till such time the required number is reached due to vacancies in

(vi) The Banks shall be free to decided their actual requirement of posts within the ceilings.
(vii) The guidelines shall remain effective till 31.3.2013 and shall be reviewed w.e.f. 1.4.2013.

Yours faithfully,
Sd. (Vijay Malhotra)
Under Secretary to the Government of India

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