Finance ministry has retrained Banks Board Bureau (BBB) for selecting CEO’s and MD’s of Public Sector Banks (PSB). Government has restricted and narrowed the mandate of the independent body set up a year ago to primarily help reform struggling banks.
Recently the CEOs of two large banks — Usha Ananthasubramanian of Punjab National Bank and Melwyn Rego of Bank of India — were transferred to moved to Allahabad Bank and Syndicate Bank, without seeking the BBB’s consent. They changed the posting of two CEO’s i.e. Mr. Sunil Mehta and Mr. DB Mohapatra, who were selected by the Bank Board Bureau for Allahabad Bank and Syndicate Bank were asked to take charge of PNB and Bank of India, respectively without consent of BBB.
Government has created a New panel headed by financial services secretary Anjuly Chib Duggal will now select CEOs for four financial institutions where the posts are lying vacant. Another member in the committe for selection of CEO’s & MD’s of banks and they are Allahabad Bank’s former chairman Subhalaxmi Panse, consultancy firm IndiaAsia’s promoter Pradeep Shah, central bank deputy governor NS Vishwanathan and IIM-Indore professor RT Krishnan and additional secretary GC Murmu.
The bureau, headed by former Comptroller and Auditor General Vinod Rai, was established in April 2016 with an aim to free the government of the administrative task of appointing top executives and overseeing their governance standards at state-run banks and financial institutions.