3. Introduction
With a view to improve the Governance of Public Sector Banks (PSBs), the
Government had decided to set up an self-governing Banks Board Bureau,
where each bank would be monitored on the basis of "key performance
indicators".
Firstly it was announced by Hon’ble Finance Minister in his Budget
Speech for the year 2015-16.
The bureau was announced in August, 2015 as part of the seven-
point Indradhanush plan to renovate these banks.
4. About BBB
• It will constantly engage with the boards of all public sector banks to formulate
appropriate strategies for their growth and development.
• The setting-up and structure of Bank Board Bureau (BBB) will replace the
Appointment Board for appointment of Whole time Directors as well as Non-
Executive Chairman of Public Sector Banks (PSBs)
5. Composition of BBB
BBB will have
three ex-officio
members
(government) and
three expert
members, two of
which will be from
the private sector,
in addition to
Chairman.
It is interesting
to note that all
the Members
and Chairman
will be part
time.
And BBB will not
be funded from
the Consolidated
Fund of India.
The BBB, which
start functioning
from 1st April,
2016 is
constituted as
6. HIERARCHY
Secretary, Department of
Public Enterprises
Deputy Governor, Reserve
Bank of India
Secretary, Department
Financial Services
Mr. H.N. Sinor, Former
Joint MD, ICICI Bank
Rupa Kudwa, Former
MD&CEO, CRISIL
Mr. Anil K. Khandelwal,
Former CMD of Bank of
Baroda
7. Functions
• The Bureau will recommend for selection of heads - Public Sector
Banks and Financial Institutions.
• The Bureau will help Banks in developing differentiated strategies and
capital raising plans through innovative financial methods and
instruments.
• BBB will also advise banks on strategies for consolidation among
them including mergers and acquisitions.
• It helps banks to develop a robust leadership succession plan for
critical positions that would arise in future through appropriate HR
processes including performance management systems.
• It will also infuse efficiency and transparency in the Banking sector.
8. Cont.
• To advise the Government on matters relating to appointments, confirmation or
extension of tenure and termination of services of the Board of Directors of the
mentioned levels;
• To advise the Government on the desired structure at the Board level, and, for senior
management personnel, for each PSB and FI;
• To build a data bank containing data relating to the performance of PSBs/FIs and its
officers;
• To advise the Government on the formulation and enforcement of a code of conduct
and ethics for managerial personal in PSBs/FIs;
• To advise the Government on evolving suitable training and development programs
for management personnel in PSBs/FIs; and
9. Conclusion
A government release had
earlier said that the bureau
was being set up to improve
the governance of public
sector banks.
It would recommend for selection
the heads of public sector banks
and financial institutions and help
banks in developing strategies and
capital-raising plans.
But The problem of bad
loans, raising capital, and an
overhaul of the banking
sector cannot be done by
merely asking the bureau to
select bankers for top jobs.
The bureau is nothing
but pouring old wine in a
new bottle as there is no
change in its constituents
Editor's Notes
where each bank would be monitored on the basis of "key performance indicators".
Comptroller and Auditor General of India
CREDIT RATING INFORMATION SERVICE OF INDIA LIMITED
3 Members have been appointed, which are
They will be in the ranks of
