According to a press statement from October 22, the Union Ministry of Finance has given the go-ahead for five more nationalized banks to hire more chief general managers (CGMs).

The ministry of finance said on Monday that this change will add 64 new CGM jobs in 11 state-run banks.

As of now, there were CGM jobs open in six of the eleven nationalized banks.

These five banks are Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and UCO Bank.

According to the ministry, the Finance Minister has also given the go-ahead for more CGMs to be hired in banks that already have CGM-level jobs.

The government said this step will make banks’ management much better and make them more efficient.

In nationalized banks, the CGM sits between the general manager (GM) and the executive director (a board-level job). Its job is to handle paperwork and carry out tasks.

By adding more CGM positions, banks will be able to keep a closer eye on important areas like digitalization, cyber security, fintech, risk, compliance, rural banking, financial inclusion, and sub-areas like retail credit, agricredit, MSME Credit, and more. This will help them make more targeted strategies and do better overall. Increasing the number of CGMs will give banks even more control and oversight, which will lead to better asset management and more efficient operations.

The number of jobs has been changed based on how the banks’ business was doing as of March 31, 2018, with one CGM for every four GMs. The next level down, to Deputy General Managers (DGM) and Assistant General Managers (AGM), will also gain from this increase. For every CGM level job, there will be four GM posts, twelve DGM posts, and 36 AGM posts. People who are moved from GM to CGM don’t just get this advantage.

When the changes were made, the number of CGM jobs in all 11 nationalized banks went from 80 to 144. So, the number of GM positions has been raised from 440 to 576, the number of DGM positions has been raised from 1320 to 1728, and the number of AGM positions has been raised from 3960 to 5184. Post improvement at the top management level will lead to more monitoring, which will make it easier to find and deal with risks, especially in complex financial settings.

This important step was taken because many banks have been asking for it, and because banks are growing their business, categories, domains, and branch networks in ways that need a specialized group of executives at the top level.