The banks chosen for such assignment are Sonali, Janata and Agrani.

About 50 performance targets will be set for these top bank officials in four different phases. As per the conditions, their appointment letters will be revised on the basis of the performance indicators.

A review of existing loan portfolio within four months after appointment of the MDs will be in the performance list, among other issues. The bank top officials will have to prepare a report on all loans exceeding Tk one crore with a target of covering at least two-thirds of the total loan portfolio.

Sources added a provision has also been envisaged in the indicators that said any MD might lose his job in case of his failure in meeting the targets or having any gross negligence or wilful misconduct, including criminal offences, before the expiry of his tenure.

Sources said as per the plan, the MDs will also be asked for bringing down the non-performing loan or bad debt and its operational cost to a certain extent. At present, approximately 22 percent of the total loan disbursed by the nationalised commercial banks (NCBs) remained as bad debt whereas it did not cross 6 percent in the case of private commercial banks (PCBs).

The plan includes a directive to the NCBs for maintaining the major financial performance indicators as the PCBs do it. The targets will be prepared in line with this directive and the directors' boards of the three NCBs will approve and send them to the finance ministry for its evaluation.

The MDs will also have to prepare a human resources master plan arranging training for skill development, reallocations, transfers and early retirement. Here the main focus will be on identifying ghost workers and redundant staff. Then plans need to be made as to how those ghost workers and non-performing workers can be removed.

Besides, plans concerning various other aspects of the bank and means as to how they will be implemented will also be a part of the MDs' job.

Three general manager level officials will also be hired from outside to improve performance in certain key areas. The banks have already started procedural activities for appointing those officials. The banks are learnt to have started hiring advisers for their information technology (IT), human resource and audit departments. Their pay and allowance will be fixed through negotiation, but the ceiling will be Tk two lakh per month.

While talking to The Daily Star a sitting MD of a nationalised bank has expressed his doubt about such targets, suggesting a full autonomy to the banks concerned in order to achieve the targets.

"If the government makes any interference in taking decision on providing credit to any organisation, such a target setting mechanism will not work'', he said, citing the example of the government influence in giving loan to a losing concern like Bangladesh Petroleum Corporation, which still owes to this bank.

Meanwhile, a high official of the finance ministry hinted at providing autonomy for some banks, but he said,"It is uncertain what will happen to the issue in case of any emergency situation in the country."

Among the managing directors of the three banks, the MD of Agrani Bank has been appointed under private management.

The same procedure will be followed in case of Janata Bank after a private management takes over its responsibility. Appointment to the post of MD at Janata Bank is already under process and a list of four names has already been sent to the finance ministry for its approval. The sitting MD, ASM Aminur Rahman is also in the list.