The Banks Board Bureau (BBB) has identified 75 senior management personnel from public sector banks for handling the leadership role in future.BBB is the apex body for selection of whole-time directors of state-owned lenders.
A batch of around 5 personnel has been identified this year, from a group of 450 senior management personnel across nationalised banks, for leading the nationalised banks and take ongoing and emerging challenges, said BBB, in its activity report for October 2018-March 2019.
Chaired by the former Department of Personnel and Training secretary B P Sharma, BBB also suggested refurbishing of credit governance architecture in the nationalised banks to reinforce efforts to decrease credit costs and enhance the efficiency of credit allocation.
“Incentivise maximisation of risk-adjusted income and disincentivise operational inefficiencies by aligning compensation with right performance metrics through the introduction of performance-based compensation through Employee Stock Option Scheme, which is different from Employee Share Purchase Scheme, and Performance Linked Incentives,” the report said.
The Bureau informed that it was also assigned to recommend personnel for the appointment of directors in government-owned insurance companies. It also made recommendations in this regard on January 4 this year, pertaining to the appointment of chairman and managing directors of LIC.
BBB’s constitutions, as a body of eminent professionals and officials for making recommendations on the appointment of whole-time directors as well as non-executive chairmen of PSBs, was approved by Prime Minister Narendra Modi in 2016.
