BBB has demanded the complete autonomy to the Public Sector Banks

The Banks Board Bureau (BBB) has reiterated some of the pending demands related to governance in public sector banks (PSBs) to the central government, including complete autonomy to their boards to decide on organisational structure.

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The BBB has asked the government to give “complete autonomy” to bank boards to decide the organisation structure. 

A committee under veteran banker P J Nayak, which had submitted a report in 2014 to review the governance of banks, had suggested a similar move, but only in the final phases of the review.The Nayak committee had recommended a three-phased reform in PSBs. The first stage would be formation of a BBB, which will be taken over by a holding company of PSBs in the second phase and then it will be followed up by empowering and strengthening the boards in the third phase. 

“Revamp credit governance architecture in nationalised banks to reinforce efforts to minimise credit costs and enhance efficiency of credit allocation,” the BBB has also recommended.

Input by BS