The Finance Minister has approved the creation of the Chief General Manager (CGM) post in five more nationalized banks. These banks include Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, and UCO Bank. Previously, only six out of the eleven nationalized banks had CGM posts. Along with creating these new CGM positions, the Finance Minister has also approved increasing the number of CGMs in banks that already had these positions. This move will help improve the administrative structure and efficiency of these banks.
Role of CGM in Banks
The CGM post serves as an important link between the General Manager (GM) and the Executive Director in nationalized banks. By adding more CGMs, banks will be better equipped to manage important areas such as digitalization, cybersecurity, fintech, risk management, compliance, and rural banking. They will also be able to focus more on specific sectors like retail credit, agricultural credit, and MSME credit. These changes will help banks create better strategies and improve their overall performance.
Improved Supervision and Efficiency
With more CGM positions, banks will have better control and supervision, which will lead to improved asset management and operational efficiency. The decision to add more CGMs was based on the business performance of banks as of March 31, 2023. The new ratio is set at one CGM for every four General Managers.
This move not only benefits General Managers who will be promoted to CGMs but also helps lower levels of executives. When a new CGM post is created, it leads to the creation of four GM posts, 12 Deputy General Manager (DGM) posts, and 36 Assistant General Manager (AGM) posts. This increases the opportunities for promotions and career growth for many banking professionals.
Increased Posts for Better Oversight
The number of CGM posts across all eleven nationalized banks has been increased from 80 to 144. Similarly, the number of GM posts has risen from 440 to 576, DGM posts from 1320 to 1728, and AGM posts from 3960 to 5184. These increases at the senior management level will provide better oversight, helping banks identify and manage risks more effectively, especially in complex financial environments.
Supporting Bank Growth
This important step was taken due to the growing demands from several banks and the need to support their expanding businesses. Many banks have seen significant growth in terms of new business areas, branch expansions, and verticals. These changes require strong leadership at the senior level to ensure smooth operations and long-term success.
By adding more CGM positions, banks will be better prepared to manage their growth and continue to serve their customers effectively.