Banks Board Bureau recommends elevation of 15 executive directors as MD PSU bank

The Banks Board Bureau (BBB) has recommended 15 executive directors to be elevated as managing directors (MD) at various public sector banks (PSBs). It was headed by former Department of Personnel and Training Secretary B P Sharma. These recommendations were based on interactions held by BBB and are subject to various clearances. The Appointments Committee of Cabinet (ACC) headed by Prime Minister will take the final decision in this regard.

Banks Board Bureau (BBB)

BBB is advisory authority (autonomous and self-governing body) of Central Government comprising eminent professionals and officials to improve governance of PSBs. It was announced by Union Government in August 2015 as part of seven point Indradhanush Mission to revamp PSBs and based on recommendations of RBI-appointed Nayak Committee. It is based in Mumbai, Maharashtra. The first BBB was set up in February 2016 under chairmanship of former CAG Vinod Rai.
Mandate: Its broad agenda is to improve governance at state-owned lenders. Its mandate also involves advising government on top-level appointments in PSBs and assisting banks with capital-raising plans through innovative financial methods and instruments as well as strategies to deal with issues of stressed assets or bad loans.
Composition: BBB comprises of Chairman, three ex-officio members (from government) and three expert members, two of which are from private sector.

Month: Current Affairs - July, 2018