Bank Board Bureau to start selection process for PSB heads soon

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The newly-constituted Bank Board Bureau (BBB) will start the selection process for appointment of managing directors of public sector banks soon.

“Tangible decision is selection of MDs, we will start that immediately,” Bureau Chairman Vinod Rai told reporters here after the second meeting of the high-powered panel.

The Bureau was constituted earlier this year to help the government select heads of PSBs and financial institutions and assist banks in developing strategies and capital-raising plans. It will also constantly engage with the board of directors of all the PSBs for their growth and development.

There are 22 state-owned banks in the country, including SBI, IDBI Bank and Bharatiya Mahila Bank.

Emerging out of the meeting, Rai said, “It’s too early in the day to have decision. We are at very preliminary stage. We will tell you about our priorities, we will tell you about terms of reference, we will tell you how we will take it forward.”

The Bureau is looking at a host of issues, including consolidation, stressed assets and capital infusion.

Besides, it is looking at bringing the NPA level down in public lenders and how to resume lending process.

The first meeting was held on April 8, which was attended by Minister of State for Finance Jayant Sinha and RBI Governor Raghuram Rajan in Mumbai.

Members such as ICICI Bank’s former joint MD H N Sinor, Bank of Baroda’s former CMD Anil K Khandelwal and rating agency Crisil’s ex-chief Rupa Kudwa were present in the meeting.

Its ex-officio members — Ameising Luikham, Secretary Department of Public Enterprises, and Financial Services Secretary Anjuly Chib Duggal also attended the meeting.

The Bureau also have three ex-officio members and an equal number of expert members.