Selection of Chairman of Public Sector Banks

Banks Board Bureau (BBB)

- Banks Board Bureau (BBB) is a government body that was set up in 2016 to improve the governance of Public Sector Banks (PSBs) and help them in developing strategies and capital-raising plans.
- It is responsible for recommending the appointment of the chairman and non-executive directors of PSBs.
- The BBB is chaired by the former Department of Personnel and Training Secretary and consists of three ex-officio members and three expert members.

Selection Process

- The selection of the chairman of a public sector bank is done by the BBB based on the recommendations of the bank's board.
- The BBB evaluates the performance of the bank and the suitability of the candidates before making the recommendation.
- The appointment of the chairman is subject to the approval of the Appointments Committee of the Cabinet (ACC), headed by the Prime Minister of India.
- The appointment is typically for a period of three years, which can be extended for a further two years.

Role of the Chairman

- The chairman of a public sector bank is responsible for the overall management and direction of the bank.
- They are responsible for formulating and implementing policies and strategies to achieve the bank's objectives.
- The chairman is also responsible for maintaining the relationships with the government, regulators, and other stakeholders.
- They are accountable to the board of directors and the shareholders of the bank.

Conclusion

In conclusion, the chairman of public sector banks is selected by the Banks Board Bureau (BBB) based on the recommendations of the bank's board. The BBB evaluates the performance of the bank and the suitability of the candidates before making the recommendation. The appointment is subject to the approval of the Appointments Committee of the Cabinet (ACC), headed by the Prime Minister of India. The role of the chairman is to manage and direct the bank and maintain relationships with stakeholders.