According to a news report, Central Government is seeking to revamp the existing practices in Human Resource and Risk Management in Public Sector Banks.
Suggested changes include hiring in specialized verticals at senior levels from private sector, establishing remuneration committee an making the board more accountable. The function of management and supervision to be separated for better accountability.
Some of these recommendations have been made by Bank Board Bureau (BBB), headed by Ex-CAG, Vinod Rai. A Finance Ministry Official said that the idea is to make the public sector banks professionally managed and ensure that they are at par with the private sector banks.
BBB has also suggested for setting up of a Nomination and Remuneration Committee in Banks. BBB has also suggested public sector banks to identify senior level officers who can be groomed to prepare a pipeline of leaders to take over as managing directors and chief executives.
Government has already announced infusion of Rs.2.11 lac crores for recapitalization of state owned banks and Finance Minister had said that recapitalization would be followed by a series of reforms to make them more accountable.
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