The Banks Board Bureau (BBB) selects the wholetime directors of State run lenders. It has now shortlisted 75 senior management personnel of PSU Banks to take over the leadership role in the future. The Activity report of BBB in in its report for Oct 2018-March 2019 states the following:
- The board has suggested total autonomy to the banks in deciding the organizational structure to pave way for a better efficiency in the banking system.
- BBB has now been entrusted with the task of recommending personnel for appointment as Directors in State run insurance companies as well as the PSU Banks.
- On Jan 4, 2019 it recommended for appointment of Chairman and Managing Directors of LIC.
- The Bureau has chosen 75 bankers for the top role from a pool of 450 senior management personnel across nationalized banks.
- These people are now under deeper assessments after which individual development plans will be taken up.
- A globally ranked Indian institution will be identified shortly where every year the identified personnel will undergo intensive leadership development journey.
- During the one year period Government has cleared all appointments suggested by the BB which includes non-executive chair persons of Dena Bank, Bank of Baroda, Punjab and Sind Bank, Central Bank of India which is apart from recommending the CMDs for several banks.
- A revamp of credit governance architecture in state run banks has also been recommended, in order to minimise credit costs and improve efficiency in credit allocation.
- To bring in reforms in PSBs the Government had set up BBB in 2016 which was headed by former Comptroller and Auditor General Rai, in line with the recommendations of P J Nayak Committee.
- This bureau started its functions from April 1, 2016 as an autonomous recommendatory body.
- There are also other financial secretaries from Public Enterprises attached to the bureau.