Recapitalisation and consolidation of public sector banks, stressed assets, current vacancies as well as government support for “winning strategies” were some of the issues that were discussed by the Banks Board Bureau (BBB) at its first meeting in Mumbai on Friday.
“We are moving ahead with the reform agenda (for public sector banks). BBB will play a big role in it,” said Minister of State of Finance Jayant Sinha, adding that four to five issues were discussed at the meeting.
“How to fill the vacancies on bank boards and those of non-executive chairmen; how to address stressed assets and better recognition of non-performing assets; government support to PSBs to help them come up with winning strategies along with bank boards; and how to make them more competitive in the changing financial sector through re-capitalisation and consolidation were some of the issues discussed,” Sinha said.
The Centre had on February 28 constituted the BBB and appointed former Comptroller and Auditor-General of India Vinod Rai as its Chairman.
Besides, ICICI Bank’s former Joint Managing Director HN Sinor, Bank of Baroda’s former CMD Anil K Khandelwal and rating agency CRISIL’s former chief Rupa Kudwa have been appointed members.
The Bureau started functioning from April 1.
Sinha said the process of mergers and consolidation in state-run lenders would be looked at after the fourth quarter.