Mumbai : Continuing with its recommendations for reform of state-owned banks, Banks Board Bureau Tuesday mooted separation of the management and supervisory role of public sector bank boards. In its recommendations made during Apr-Sep posted on its website, the bureau also suggested putting in place “a framework for assessment of the Board and directors of PSBs on the lines provided for in the Companies Act, 2013”.
The bureau has recommended empowering non-official directors of state-owned banks to play the role of independent directors, in line with the Companies Act. Additionally, in a recommendation aimed at ensuring top talent is attracted to boards of state-owned banks, the bureau suggested Nomination and Remuneration Committee set such payouts as per norms of the Companies Act.
This will ensure that state-owned banks that have a “higher degree of operating challenges are not disadvantaged vis-a-vis its private sector competitors when it comes to attracting board-level talent”. To facilitate this, the bureau has suggested creating a Nomination and Remuneration Committee.
