MUMBAI, March 22: Bank of Baroda has become the first public-sector bank to implement the autonomy package announced by the ministry of finance in November 1997.The Mumbai-based state-run bank has started implementing three of the seven autonomy measures -- creation of new posts, independent policy for overseas postings and the formation of a committee of directors for considering officers' promotions. The board of directors had early last month approved of the internal policies framed to implement the three measures, said sources. Policies on other measures are presently being worked out. "We have already started implementing these measures," said a senior BoB official.
The finance ministry had asked the banks to implement the autonomy measures after framing transparent policy framework. BoB has already created some new posts which would enable placement of competent and technically skilled officers at suitable positions outside the traditional hierarchy in the bank.
The finance ministry directivesays that eligible banks "shall be competent to decide their own policy in respect of creation, abolition, upgradation/ modification of posts for their administrative offices up to TSGS-IV (deputy general manager)." However, for creation of posts above general manager level, the banks will continue to require government approval. Another measure that BoB has already started implementing is in the selection of candidates for placement in the overseas branches of public sector banks. The ministry communique states that "banks shall henceforth make their own policy for screening and selection of candidates, as considered necessary for posting in their overseas branches as per policy approved by their board of directors."
BoB has also formed a panel of directors, consisting of the bank chairman, a government nominated director and an RBI nominated director, for the purpose of promotion of officers from scale VI to VII. Among the four more autonomy measures that are yet to be implemented, internal policy oncampus recruitment is already framed and is likely to get the approval of the board in its next meeting.
The other three measures relate to the freedom given to banks regarding requirements of rural/semi-urban posting for bank officers, reimbursement of entertainment expenses for officers in the nationalised banks and delegation of powers with regard to the deputation of officers, lateral induction of officers on contract basis and lateral mobility of officers within banks.
The ministry package had given partial autonomy to banks fulfilling four conditions, viz., posting net profits for the last three years, capital adequacy ratio of more than 8 per cent, net NPA level below 9 per cent of the total bank assets and a minimum owned funds of Rs 100 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
