Banks Board Bu­reau To Hold its First Meet To­day

The Economic Times - - Economy - Our Bu­reau

New Delhi: Banks Board Bu­reau (BBB), headed by for­mer Comptroller & Au­di­tor Gen­eral of In­dia (CAG) Vinod Rai, will holds its first meet­ing on Fri­day. A gov­ern­ment of­fi­cial said the is­sues taken up for the first meet will also in­clude con­sol­i­da­tion among staterun banks.

“It is more of a freewheeling dis­cus­sion among board mem­bers. All is­sues will be dis­cussed, and ac­cord­ingly, it will be de­cided which ones will be put on pri­or­ity,” said the above quoted of­fi­cial, adding cap­i­tal in­fu­sion and se­lec­tion method in state-run lenders will also be taken up for dis­cus­sion.

BBB is set up to im­prove governance at pub­lic sec­tor banks, and has a part-time chair­man with a seven-mem­ber board. Other mem­bers of BBB in­clude Anil K Khan­del­wal, for­mer CMD at Bank of Bar­oda; HN Si­nor, for­mer joint MD at ICICI Bank; and, Rupa Kudwa, for­mer MD & CEO at CRISIL. Fi­nan­cial ser­vices sec­re­tary, deputy gover­nor of the Re­serve Bank of In­dia and sec­re­tary of pub­lic en­ter­prises will be ex-of­fi­cio mem­bers.

The bu­reau will re­place the board for ap­point­ment of whole-time di­rec­tors as well as non-ex­ec­u­tive chair­man of pub­lic sec­tor banks (PSBs). It will also en­gage with boards of di­rec­tors of all PSBs to for­mu­late ap­pro­pri­ate strate­gies for their growth and devel­op­ment. The gov­ern­ment has main­tained that BBB is the first step to­wards a hold­ing com­pany struc­ture for state-run banks.

Eye on banks’ governance: Rai

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