Banks Board Bureau looks to strengthen lenders

NEW DELHI: The Banks Board Bureau (BBB) met in Mumbai on Monday to take stock of some of the recent developments in state-run lenders and also to shortlist names of non-executive chairpersons for three public sector banks (PSBs), said two officials aware of the meeting.

“The meeting was to shortlist candidates but some of the earlier suggestions made by the BBB on how to further strengthen PSBs were also discussed,” said one of the officials.

Last week, in its compendium of recommendations, the BBB had stated that “if the government does indeed desire to make the Bureau address issues of governance around PSBs in a holistic manner and make its output effective, there is need for an organic relationship between government and the Bureau.”

It had also stated that it sought a meeting with the finance minister to discuss some of these issues but there has been no response. A government official said that the bureau has itself said that it seeks to be a recommendatory body which will provide the necessary independent feedback to the government.

In its compendium of recommendations, the BBB said that at present, it is merely functioning as an appointment board and sought wider mandate from the government including advising the government on the consolidation of public sector banks in the least disruptive manner.