 "Newsmaker: Vinod Rai")
The newly-constituted Banks Board Bureau (BBB) will soon begin the selection process for appointment of managing directors at state-owned banks.
“A tangible decision is selection of MDs. We will start that immediately,” BBB chairman Vinod Rai said after the second meeting of the high-powered panel.
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The Bureau was constituted earlier this year to select heads of state-run banks and to help banks develop innovative financial methods to raise capital, including mergers and acquisitions. It replaced the earlier appointment boards for selection of public sector bank (PSB) heads.
Rai said, “We are at a very preliminary stage. We will tell you about our priorities, we will tell you about terms of reference, we will tell you how we will take it forward.”
The Bureau is looking at a host of issues, including consolidation, stressed assets and capital infusion. And, at bringing the level of non-performing assets and how to boost lending.
The first meeting was on April 8. It was attended by Union minister of state for finance Jayant Sinha and Reserve Bank governor Raghuram Rajan, in Mumbai.
Other BBB members are H N Sinor, former joint MD at ICICI Bank, Anil Khandelwal, former chairman at Bank of Baroda and Rupa Kudwa, former head of rating agency CRISIL. Ex officio members are Ameising Luikham, secretary of the department of public enterprises, and Anjuly Chib Duggal, secretary, financial services.
BBB was one of the seven elements of the government's 'Indradhanush' strategy to revamp the functioning of state-run banks. It includes re-capitalisation, de-stressing of assets, empowerment, a framework of accountability and governance reforms.
The government will recapitalise PSBs with Rs 25,000 crore in 2016-17, followed by Rs 10,000 crore each in FY18 and FY19. It infused Rs 25,000 crore in 2015-16.
