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Banks Board Bureau in 4 months: FinMin

Banks Board Bureau in 4 months: FinMin
The government will soon set up an autonomous Banks Board Bureau (BBB), a super authority for PSU lenders to recommend board level appointments and advise on strategies for raising funds as well as mergers & acquisitions. BBB is likely to be a six-member board comprising former CMDs of banks and financial services sector experts. It will be headed by Secretary, Department of Financial Services.

There are 22 state-owned banks in India including SBI, IDBI Bank and Bhartiya Mahila Bank. "The Bureau should be hopefully in place in the next 3-4 months after it is cleared by Appointments Committee of the Cabinet (ACC) headed by Prime Minister Narendra Modi," Department of Financial Services Secretary Hasmukh Adhia told PTI in an interview.

Once in place, BBB will search and select heads of public sector banks and help them develop differentiated strategies of capital raising plans to innovative financial methods and instruments, he said. It would also be responsible for selection of non-executive chairman and non-official directors on the boards, he said. Besides, BBB will also steer strategy discussion on consolidation based on the requirement, Adhia added.

Government wants to encourage Bank Boards to restructure their business strategy and also suggest way forward for their consolidation and merger with other banks if it is win-win for both, the Finance Ministry said in a statement recently.
PTI

PTI

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