Finance Ministry: Record profit to public sector banks

New Delhi| In view of the increasing business and record profits of public sector banks (PSBs), the Finance Ministry is considering a proposal to increase the posts of Chief General Managers in them. As per existing government instructions, PSBs can have a Chief General Manager (CGM) for four General Managers.

These instructions were issued in 2019, sources said. Since then, the performance of public sector banks has improved significantly despite the COVID-19 pandemic. The Department of Financial Services functioning under the Ministry of Finance is reviewing the CGM posts. The decision to relax the instructions will be taken after thorough investigation and consideration of the need to take the business of banks forward. The CGM position was created in 2019 following the merger of 10 nationalized banks into four large banks.

Further, public sector banks have requested the Department of Financial Services that the Board of Directors should be allowed to decide the number of posts as per their business needs. Nearly four lakh officers are employed in 12 public sector banks.

The current ratio of GM/DGM/AGM is 1:3:9, said a senior executive at a public sector bank. It is based on the situation in 2016 and should be reviewed for better functional control. This will help in improving the appointment of senior officers.

The total combined profit of public sector banks in the last financial year crossed Rs 1.41 lakh crore. This is up 35 per cent on an annual basis. In 2022-23, 12 government banks together had earned a net profit of Rs 1,04,649 crore. SBI had accounted for more than 40 per cent of the total profits of public sector banks during 2023-24. During this period, SBI had made a profit of Rs 61,077 crore. Punjab National Bank’s profit had increased by the highest 228 per cent to 8,245 crore.