The Centre has decided to set up Financial Services Institutions Bureau (FSIB) as a single entity for making recommendations for appointments of Wholetime Directors and Non-Executive Directors in public sector banks (PSBs), public sector insurers (PSIs) and financial institutions (FIs), said sources.

This new entity, which will be headed by former Banks Board Bureau Chairman Bhanu Pratap Sharma for two years, will also make recommendations for selection of General Managers and Directors in non-life PSIs. 

The Appointments Committee of the Cabinet (ACC) headed by the Prime Minister has approved the establishment of FSIB, the sources added.

The ACC has also approved the appointment of part-time, non-government members for matters relating to PSBs and FIs on FSIB for a term of two years, they said.

Animesh Chauhan, former Chairman and Managing Director of Oriental Bank of Commerce, has been appointed as Member of FSIB in the ex-banker from public sector category.

Shailendra Bhandari, former Managing Director & CEO of ING Vysya Bank, has been appointed as Member of FSIB in the ex-banker from Private Sector category.

With the ACC giving its approval for constituting the FSBI by appointing Chairperson and two Members, the Department of Financial Services (DFS) in the Finance Ministry is expected to carry out necessary modifications in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1970/1980 with the approval of the Finance Minister Nirmala Sitharaman, sources added.

Future of BBB

The establishment of FSIB could also mean the end of the road for the Banks Board Bureau (BBB), which was formed in April 1, 2016 as an autonomous body to search and select personages for the Board of Public Sector Banks, Public Sector Financial Institutions and Public Sector Insurance Companies and recommend measures to improve corporate governance in these institutions, banking industry observers said.