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Taking its first big step, the newly-constituted Banks Board Bureau (BBB) will on May 16 conduct the selection process for managing directors in three public sector banks — Indian Overseas Bank, United Bank of India and Bank of Maharashtra.
This will be the first occasion where the BBB — which started functioning on April 1— goes about with its immediate priority of picking up the right candidates for the top jobs in public sector banks, sources in the banking industry said. It may be recalled that BBB Chairman Vinod Rai had on April 22 said that selection of senior management personnel to fill in existing and upcoming vacancies in PSBs will be an immediate priority for the Bureau.
The May 16 meeting may be confined only to the selection process of managing directors in the three PSBs. Indications are that the selection process for executive directors may be taken up on another date.
The main purpose for setting up the Bureau is to improve governance in public sector banks. While the Bureau is immediately focussed on selection of senior management personnel, it may, in the coming days, look at helping banks devise strategies for raising capital. The BBB, which is chaired by former CAG Vinod Rai, comprises Anil Khandelwal, former chairman of Bank of Baroda, HN Sinor, a former joint managing director of ICICI Bank, and Roopa Kudva, Managing Director of Omidyar Network India Advisors. R Gandhi, RBI Deputy Governor, Anjuly Chibb Duggal, Financial Services Secretary, and Ameising Luikham, Secretary, Department of Public Enterprises, are ex-officio members. The key difference this time round is that the RBI Governor will have no role in the selection process of senior management personnel in banks. The recommendation of the BBB will go to the government, which will take the final call, it is learnt.
Prior to the BBB, the government had, while overhauling the selection process (after the Syndicate Bank chairman episode), constituted three screening committees of two members each, comprising an RBI Deputy Governor, Financial Services Secretary and four experts. The recommendations of the committees were then processed by an appointments board headed by the RBI Governor.
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