State Bank of India, the largest bank of India, has appointed Charanjit Surinder Singh Attra as the new Chief Financial Officer (CFO). Attra was previously a partner at EY India. The hiring has been a result of the lender’s recent lateral hiring exercise. In a regulatory filing, the bank said, “Pursuant to the applicable provisions of the ‘Sebi (LODR) Regulations 2015 read with Schedule lll Part A(A)(7), we advise that Charanjit Surinder Singh Attra has been appointed as chief Financial officer”. Arundhati Bhattacharya, former chairperson of SBI, had voiced her opinion on many occasions about the probable benefits of a lateral hiring. This is exactly what the bank has been doing at the moment.
Remuneration between Rs 75 lakh and Rs 1 crore
The recruitment of an expert for a specific role from another organization is lateral hiring. While declaring the merger of 10 public sector banks (PSBs) into four, finance minister Nirmala Sitharaman had last year informed that banks would also hire a chief risk officer at market-linked compensation to lure talent. For the post of chief financial officer, SBI had asked for applications in June. It pledged to offer remuneration of anywhere between Rs 75 lakh and Rs 1 crore. The amount is remarkably higher than even what its chairman earns. Laterally recruited employees are paid at prevailing market rates, higher than that of public sector banks.
The CFO post fell vacant after the promotion of Prashant Kumar as the new chief executive of Yes Bank in March. After this, Chalasani Venkat Nageswar, a deputy managing director at SBI was given the additional charge as CFO.