1. The large PSBs having balance sheet size (assets + liabilities) of above Rs. 1 lac crore each to exercise managerial autonomy in regard to appointment of SBAs also from the year 2008-09 onwards. Thus, State Bank of India, Allahabad Bank, Bank of India, Bank of Baroda, Canara Bank, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Syndicate Bank, Punjab National Bank, UCO Bank and Union Bank of India would be required to select / appoint their SBAs from the year 2008-09.In addition,Andhra Bank and Punjab & Sind Bank which have opted to exercise autonomy in the matter of appointment of statutory auditors will also select/appoint their SBAs in 2008-09.

2. For the remaining PSBs, the existing practice of RBI providing the list of audit firms to be appointed as SBAs would continue during the years 2008-09.

3. In respect of the banks identified above, RBI to provide the list of eligible auditors/audit firms. The existing categorization norms for empanelment of SBAs to continue.

4. The auditors/audit firms who got statutory audit of branches of PSBs in the year 04-05 and afterwards will continue to get the audit of same bank except in certain exceptional cases. Banks do not have any authority to remove the audit firms during this period without prior approval of the Reserve Bank of India.

5. The concept of one audit firm for one PSB to continue. The consent given by an audit firm will be treated as irrevocable.

6. The number of eligible auditors / audit firms is more than the number of branches to be audited at the following 33 centres (viz. Mumbai, Kolhapur, Pune, Solapur, Thane, Kolkata, Chennai, Coimbatore, Delhi/ New Delhi, Ajmer, Bikaner, Jaipur, Kota, Udaipur, Ahmedabad, Vadodara, Surat, Hyderabad, Chandigarh, Raipur, Faridabad, Gurgaon, Panchkula, Panipat, Sonipat, Bangalore, Ernakulam, Indore, Nagpur, Ludhiana, Jodhpur, Bhilwara, and Ghaziabad). In such centres, the auditors / audit firms will be put to a period of compulsory rest for two years. In other centres, where the number of eligible auditors / audit firms is less than the number of branches to be audited, the branch auditors will be subjected to the principle of rotation.

7. After the selection of branch auditors, PSBs will be required to recommend the names of both continuing and new branch auditors to seek the approval from RBI before their actual appointment.

In case of any query, members may kindly contact Phone No: 011-30110444 and send e-mail at mefpdc@icai.in