Pankaj Dwivedi Demoted from Executive Director to General Manager

In an unusual and surprising development, the Government of India has revoked the appointment of Pankaj Dwivedi as Executive Director (ED) of Union Bank of India, effectively demoting him to the post of General Manager (GM). The decision, which has sent ripples through the Indian banking sector, raises questions about internal governance, regulatory oversight, and the rare reversals in top-level appointments in public sector banks.

What Happened?

Pankaj Dwivedi was appointed Executive Director of Union Bank of India in May 2024. However, within just over a year, the government issued an official order withdrawing his promotion, directing Union Bank to reinstate him to his earlier role as General Manager.

According to government sources and media reports, this decision was not related to performance issues during his tenure as ED, but rather due to questions surrounding the process or eligibility criteria followed during his elevation to the top management role. The precise reasons remain confidential, and no public statement has been made by Dwivedi himself.

Why Is This Significant?

Such reversals in senior public sector bank positions are extremely rare. Once a candidate is cleared by the Financial Services Institutions Bureau (FSIB) and the Appointments Committee of the Cabinet (ACC), reversals are almost unheard of unless there’s a significant breach of conduct or procedural lapse.

This incident suggests the following:

• Stricter government scrutiny on leadership appointments in public sector banks.
• A possible review of eligibility or selection protocols for senior banking roles.
• A potential signal to other executives about accountability and compliance, not just in performance, but in appointment processes.

What It Means for Union Bank of India

Union Bank, one of India’s largest public sector banks, now faces an unexpected gap in its top leadership. The sudden rollback of Dwivedi’s appointment may lead to:

• Temporary disruption in strategic planning or execution of projects led by Dwivedi.
• A morale challenge within senior management, with questions around clarity and transparency in leadership decisions.
• Increased caution in future promotions or lateral hires at executive levels.

Who is Pankaj Dwivedi?

Before his appointment as ED, Pankaj Dwivedi was serving as a General Manager at Union Bank, with years of experience in risk management, operations, and financial oversight. His appointment had been seen as a natural progression given his background, but the rollback now casts a shadow over the criteria that were originally used for his elevation.

Expert Views and Industry Reactions

Banking analysts and former executives say that while the government is within its rights to correct any procedural oversight, such a visible and rare demotion could raise doubts about the robustness of institutional vetting mechanisms. It may also impact public confidence and cause reputational concerns for the bank if not addressed transparently.

There is a growing call for:

• Greater transparency in high-level banking appointments.
• Formal clarification from the Ministry of Finance or Union Bank to quell speculation.
• Possible policy revision in the way ED and MD-level appointments are validated post-selection.

Final Thoughts

The demotion of Pankaj Dwivedi is not just a personnel shift—it reflects a broader push for accountability in India’s public banking sector. Whether this move was driven by technical, procedural, or undisclosed reasons, its visibility highlights the need for clear, consistent, and transparent leadership selection in institutions that manage public money and national financial stability.

The coming days may bring more clarity, but one thing is certain: this case will likely influence how future executive-level appointments in PSBs are evaluated, vetted, and—if needed—reversed.