The Banks Board Bureau (BBB) has identified 75 senior management personnel, from a pool of 450 people, of public sector banks to take over the leadership roles in the future. BBB is the apex body for selection of whole-time directors of state-owned banks.
BBB, in its activity report for October 2018-March 2019, said that the batch of the selected personnel are supposed to help nationalised lenders take on the emerging and current challenges, as well as help, create a leadership pipeline.
"They are presently undergoing deeper assessments after which individual development plans will be generated. Shortly, a globally ranked Indian institution will be identified where every year the identified personnel will undergo intensive leadership development journey," added BBB.
BP Sharma, BBB head and former Department of Personnel and Training secretary suggested revamping credit governance architecture in nationalised banks to enhance the efficiency of credit allocation and reinforce efforts to minimise credit costs.
The Bureau has planned to give complete autonomy to banks for deciding its organisational structure for better efficiency.
The report said, "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 further added that the BBB was assigned to recommend personnel for appointment as directors in the government's insurance companies. In this regard, on January 4 this year, it made its recommendations for the appointment of chairman and managing directors of LIC.
In 2016, PM Modi approved the constitution of the Banks Board Bureau as an eminent body to make recommendations for appointment of whole-time directors and non-executive chairmen of PSBs.
(Edited by Vivek Dubey)