**Executive Summary**
This document, dated October 21, 2024, from the Department of Financial Services, Ministry of Finance, outlines revised guidelines for the number of posts of Chief General Managers (CGMs), General Managers (GMs), Deputy General Managers (DGMs), and Assistant General Managers (AGMs) in nationalised banks. The guidelines are based on the banks' business mix as of March 31, 2023. The revised number of vacancies will be effective from April 1, 2025.
**Key Points / Main Content**
* **CGM Post Availability:**
* The post of CGM (Scale-VIII) is available in all Nationalized Banks, below board level, irrespective of business mix.
* **Bank Categorization:**
* Nationalised Banks are classified into two categories based on business mix as of March 31, 2023:
* Category A: Business mix less than Rs. 10 lakh crore.
* Category B: Business mix of Rs. 10 lakh crore & above.
* **CGM Number Guidelines:**
* Specific numbers of CGMs are designated for nationalized banks based on their business mix:
* Up to Rs. 4 lakh crore: 4 CGMs.
* Between Rs. 4 to 10 lakh crore: 8 CGMs.
* Above Rs. 10 lakh crore: Minimum of 10 CGMs, plus one additional CGM for every increase in business mix up to Rs.1 lakh crore.
* At least 50% of total CGMs should be placed at corporate offices for Category A banks.
* **Executive Numbers and Ratios:**
* The number of executives (CGM/GM/DGM/AGM) is based on the banks’ business mix as of March 31, 2023.
* The number of GMs is linked to the number of CGMs, and the number of DGMs and AGMs are linked to the number of GMs.
* CGM:GM ratio is 1:4 for all categories of nationalised banks.
* GM:DGM:AGM ratio is 1:3:9 for all categories of nationalised banks.
* Specific bank-wise numbers for CGMs, GMs, DGMs, and AGMs are provided in a table.
* **Executive Ceiling Considerations:**
* The ceiling on the number of executives must include executives posted at business units directly contributing to the bank’s profitability.
* Executives posted at other organizations (RRBs, Subsidiaries, etc.) are considered above the prescribed ceiling.
* **Implementation Timeline and Discretion:**
* The revised number of vacancies will be effective from April 1, 2025.
* Additional vacancies will be released in a staggered manner over 3 years.
* Banks may fix the number of CGMs even below the prescribed number and similarly, the number of GMs, DGMs, and AGMs may also be fixed below the said ratio.
* **Review:**
* The methodology may be reviewed by the Department in FY 2027-28.
**Impact Analysis**
**Stakeholder: Nationalised Banks**
* **Impact:** Banks must adhere to the prescribed executive numbers and ratios based on their business mix. They need to adjust their organizational structure to align with the new guidelines, manage cadre effectively, and consider the placement of executives.
* **Action Required:** Banks need to review their current staffing structure, align it with the new guidelines, and take appropriate action with the due approval of their respective Boards.
**Stakeholder: Government Nominee Directors**
* **Impact:** Oversight role.
* **Action Required:** Oversight of Nationalised Bank's Action
Key Entities Referenced
Nationalised Banks: Banks owned by the government that are the primary subject of the policy.
Chief General Managers (CGMs): One of the key executive positions in Nationalised Banks, the number of which is being reviewed.
General Managers (GMs): Executive position in Nationalised Banks, below CGM and above DGM, number is being reviewed.
Deputy General Managers (DGMs): Executive position in Nationalised Banks, below GM and above AGM, number is being reviewed.
Department of Financial Services (DFS): The department within the Ministry of Finance that issued the policy.
eF. No.2/19/2004-IR (3ff€. 3lR.)
l-fl-tU TIEF'R / covernment of India
fog+i15C+l rvrinistry of Finance
ft-fiq €c[[( frqfq /Department of Financial Services
Jeevan Deep Building, 3'd floor
Parliament Street, New Delhi - 110 001
2l October 2024
To
The Managing Director and CEO,
All Nationalised Banks.
Subject: Review of guidelines on the number of posts of Chief General Managers
(CGMs) / General Managers (GMs) / Deputy General Managers (DGMs) /
Assistant General Managers (AGMs) in the Nationalised Banks - regarding.
Madam / Sir.
Please refer to this Department's letter of even number dated 22.02.2016 vide which the
banks were communicated the revised formula, based on business mix as on 31.3.2015, for
calculation of the number of posts of GMs in the Nationalised Banks. The ratio of number of
GM:DGM:AGM was kept as l:3:9.
2. This Department. with the approval of the Finance Minister, vide letter dated
30.08.2019 had conveyed the 'no objection' of the Govemment to the Nationalised Banks to
introduce CGM level post in the banks having a business mix more than Rs.l0 lakhs crore. The
ratio of number of CGM:GM was kept as I :4.
3.
Taking into consideration the requests received from various banks and also the high
pace ofdigitalization, the growing role ofspecialized and dedicated verticals, branch expansion
etc., in banks, the department has reviewed the methodology of computation of CGMs and the
following are decided:
(i)
The post ofCGM (Scale-VIII) shall henceforth be available in all the Nationalized
Banks, below board level, inespective of its business mix;
(ii)
The Nationalised Banks shall be placed in two (02) categories based on the business
mix as on 31.03.2023; (Category A: Business Mix of less than Rs. 10lakh crore)
and (Category B: Business Mix of Rs.l0lakh crore & above);
(iii)
There shall be Four (04) CGMs in Nationalised Banks with a business mix of up
to Rs. 4lakh crore; Eight (08) CGMs in Nationalised Banks having a business mix
between Rs. 4 to l0 lakh crore and for those Nationalised Banks having a business
Page I of3mix of Rs. l0 lakh crore & above, there shall be a minimum Ten (10) CGMs and
One (01) additional CGM for every increase in business mix up to Rs.l lakh crore;
(iv)
At least 50% ofthe totat CGMs should be placed at corporate offrces for Category
A banks.
4. This department has further reviewed the method of computation of the number of
CGMs / GMs / DGMs i AGMs and the lollowing are decided:
(i)
The number of executives (CGM / GM / DGM / AGM) shall be based on the banks'
business mix as on 31.03.2023'-
(ii) The number of GMs shall be linked to the number of CGMs and the number of
DGMs & AGMs shall be linked to the number of GMs;
(iii)
The ratio of CGM:GM shall be 1:4 for all category of nationalised banks and the
ratio of GM:DGM:AGM shall be l:3:9 for all category of nationalised banks;
(iv) Based on the methodology stated above, the number of CGMs, GMs, DGMs &
AGMs shall be as under;
BANKS CGM (;M DGM AGM
Category A banks
Punjab & Sind Bank 4 16 48 t44
Bank of Maharashtra 8 32 96 288
UCO Bank 8 32 96 288
Indian Overseas Bank 8 JZ 96 288
Central Bank of India 8 , -!- 96 288
Category B banks
Indian Bank l1 132 396
Bank of India t2 48 144 432
)n
Union Bank of India 80 240 720
Canara Bank 21 84 252 756
Punjab National Bank 22 88 264 792
Bank of Baroda 22 88 264 792
(v) The banks have to strictly adhere to the numbers as indicated in above table.
However, the banks may use their discretion to be prudent and conservative in this
regard and may fix the number of CCMs even below the prescribed number.
Similarly, the number of GMs, DGMs and AGMs may also be fixed below the said
ratio as per the actual requirement and in the best interest ofthe bank.
Page 2 of3(D
The ceiling on the number of executives must include executives posted at the
business units that contribute directly to the business / profitability ofthe bank (i.e.)
no vacancy to be created against the executive placed at units that are contributing
directly to the bank's business / profitability (e.g. Executives placed at overseas
branches).
(ii)
Executive posted at other organisations such as RRBs / Subsidiaries / Joint ventures
/ Associates / Government offices, including, inter-alia, CBI, IBBI, CVCs, DFS,
CERSAI, DRT, etc. to be treated as over and above the prescribed ceiling on the
number ofexecutives arrived as per the proposed methodology.
5 It is to be noted that the revised number of vacancies shall be effective only from
01.04.2025. The additional vacancies, thus created due to revision in the number of
officers, shall be released in a staggered marurer (equal distribution up to extent possible)
in 3 years for proper cadre management.
6 The methodology may be reviewed by this Department in the FY 2027'28 based on the
business mix of the Banks as on 3l .03.2027 .
7 The banks are advised to take appropriate action in the matter with the due approval of
their respective Boards.
8.
This has the approval of the Honble Finance Minister.
Yours faithfully,
Affi o
6,
o\z'zl
I'
(fr-qq'qi-+-i ft-dTfi
Vijay Shankar Tiwari)
3fiREBd- qr{dvfiF'R/
Under Secretary to the Govt. of India
Tel: 0ll- 2336 2349
Email: ir(Dnic.in
(i)
Copy to: All Government Nominee Dircctors
(ii) Website of DFS
3