Govt appoints Bhanu P Sharma as Banks Board Bureau Chairman
Former DoPT Secretary Bhanu P Sharma was appointed as the Chairman of the Banks Board Bureau for two years. Until recently, the BBB was headed by the former CAG Vinod Rai.
The government on Thursday announced the new members of Banks Board Bureau (BBB), a professional body which was set up 2016 for selection of CEOs and other top level executives of public sector banks (PSBs). Former DoPT Secretary Bhanu P Sharma was appointed as the Chairman of the body for two years. Until recently, the BBB was headed by the former CAG Vinod Rai.
This appointment comes at a time when some public sector bank officials at the Punjab National Bank have been accused of being complicit in the Nirav Modi scam, where fake LoUs were allegedly issued in connivance of bank staffers.
While announcing the appointment, Financial Services Secretary Rajiv Kumar said Sharma will have the same mandate as was given Rai. "Govt renews commitment to not interfere in Sr level appointments in PSBs," Kumar said in a tweet while announcing the new appointment.
He said the new BBB has professionals with diverse expertise to select top management in public sector banks (PSBs). BBB recommendations made so far include HR reforms agenda to be taken forward, Kumar added.
The other members of the BBB are: Vedika Bhandarkar (former MD Credit Suisse India), P Pradeep Kumar (former MD SBI) and Pradip P Shah (founder MD Crisil).
Banks Board Bureau was announced after the recommendations of the RBI-appointed Nayak Committee which was set up to review the governance of boards of banks in India. BBB's broad agenda was to improve governance at state-owned lenders.
Its mandate also involved advising the government on top-level bank appointments and assisting banks with capital-raising plans as well as strategies to deal with bad loans. However, Despite BBBs recommendations coming on time, there have been delays in announcing successors.
The Banks Board Bureau members will also have to tackle the continuing pile up of stressed assets at PSBs.