Staff Correspondent: The government's latest amendment to the policy governing the appointment and promotion of Managing Directors (MDs) and Chief Executive Officers (CEOs) of state-owned and specialized banks has sparked widespread criticism among senior banking officials, who argue that the new eligibility criteria are discriminatory and undermine merit-based career progression.

The 2026 policy introduces a significant change that was absent from both the 2019 and 2024 guidelines. Under the revised rules, candidates seeking promotion to the position of Managing Director must now have served as Deputy Managing Director (DMD) for at least two years, in addition to possessing a minimum of 20 years of banking experience.

The latest amendment has already triggered debate within the banking community, with many calling for a more inclusive and transparent promotion framework that ensures equal opportunities for all qualified candidates.

Banking officials contend that neither the 2019 nor the 2024 policy imposed any minimum tenure requirement in the DMD position. They argue that the newly introduced condition unfairly excludes many experienced and qualified executives who have long served the banking sector but have not yet completed two years as DMDs.

Several senior officials believe the amendment has been designed to benefit a select group of individuals rather than ensuring an open and competitive promotion process. They say the additional requirement limits the pool of eligible candidates and may delay the promotion of deserving officers despite their extensive professional experience and proven competence.

Critics further argue that the amendment contradicts the principles of transparency, equal opportunity, and meritocracy in public sector banking. They warn that such restrictive conditions could negatively affect employee morale and create dissatisfaction among senior executives who had expected promotion based on experience and performance.

Bankers have urged the authorities to review the latest circular and withdraw the newly imposed two-year DMD tenure requirement. They argue that eligibility for the top executive position should primarily depend on professional competence, leadership ability, integrity, and overall banking experience, rather than an arbitrary tenure condition that did not exist in previous policies.