Bank Board Bureau’s first meeting discusses stressed assets
The first meeting of the Bank Board Bureau (BBB) was recently held.
- During the meeting, board members discussed about non-performing assets (NPAs), or bad loans, as well as strategies for recapitalising banks.
- Filling up of vacancies of directors and non-executive chairmen was also discussed at the meeting.
Background:
Taking the first step towards a holding company structure for state-run banks, the government, in August last, announced the setting up of the BBB.
About the Bureau:
The bureau was announced as part of the seven-point Indradhanush plan to revamp PSBs.
- BBB is an autonomous body.
- The bureau will have three ex-officio members and three expert members, in addition to the Chairman.
What it does?
- The Bureau is mandated to play a critical role in reforming the troubled public sector banks by recommending appointments to leadership positions and boards in those banks and advise them on ways to raise funds and how to go ahead with mergers and acquisitions.
- It will constantly engage with the boards of all 22 public sector banks to formulate appropriate strategies for their growth and development.
- They will also constantly engage with the Board of Directors of all the public sector banks to formulate appropriate strategies for their growth and development.
- The bureau will search and select heads of public sector banks and help them develop differentiated strategies of capital raising plans to innovative financial methods and instruments.
- It would also be responsible for selection of non-executive chairman and non-official directors on the boards.
- Besides, the body will also steer strategy discussion on consolidation based on the requirement.
