The finance ministry is busy processing around 3,000 requests for the appointment of around 70 directors on the boards of 17 nationalised banks. At the same time, the ministry is asking its nominees on various bank boards to tighten their act.
A proposal to remove Reserve Bank of India nominees from the boards of public sector banks is also being considered at the highest level, sources said. Recently, a meeting was convened by minister of state for finance Balasaheb Vikhe Patil to review the performance of government directors on the boards of public sector banks. Various proposals were discussed to make the system more effective.
Sources said directors, who are government nominees on the boards, would have to present more detailed reports, which as per existing norms is to be done within a month of the board meeting.
Sources said it was observed in the case of some public sector banks that the directors were not aware of all the developments or were not seeking answers from the management on a number of issues. The directors would now be required to throw up a set of questions to the management on critical issues.
While the boards of three weak banks _ Indian Bank, United Bank of India and Uco Bank _ have been fully constituted, one director each from the government's quota of two has been appointed on the boards of Vijaya Bank, Dena Bank, Canara Bank and Bank of Baroda.
Also, shareholder directors, four on each public sector bank board, have been appointed in case of Bank of Baroda, Oriental Bank of Commerce, Dena Bank Corpo-ration, Bank of India and State Bank of India. In the case of two other banks
