Six public sector banks are working without chairman

Last Updated on August 3, 2023 by Brajesh

Six public sector banks are working without chairman that too when RBI governor is focusing on asking Banks to strengthen their Governance.

While replying to a unstarred question in Lok Sabha, Mr. Bhagwat Karad informed that 6 Public Sector Banks are currently working without a non -executive chairman. The banks ins which this position is vacant were

  • Bank of lndia,
  • Bank of Maharashtra,
  • Central Bank of India,
  • Indian Bank,
  • Indian Overseas Bank and
  • UCO Bank

While in 2014-15 for better governance and control Government made 2 position separated one of Managing Director and another of Chairman in Public Sector Banks resulting in appointing chairman in 9 Public Sector after 2014-15.

Banks where Chairman was appointed were:-

  • Bank of Baroda,
  • Bank of lndia,
  • Canara Bank,
  • Central Bank of India,
  • lndian Bank,
  • lndian Overscas Bank,
  • Punjab National Bank,
  • Punjab and Sind Bank and
  • Union Bank of India.

The chairman would be the non-executive arm and will be responsible for policy decisions, and the managing director would manage the bank on a daily basis.

Non Executive Chairman in PSBs preside over the meetings of the Board and Committees of Board, wherever they are appointed as chairperson of the such Committees, while few experts have the opinion that in absence of Non Executive Chairman, Managing Director would have to preside over the Board Meeting.

However, currently as many as 6 Public Sector Banks are currently working without a chairman and some of these posts have been vacant for over two years. However, to fill the same Government had asked Financial Services Institutions Bureau to recommend persons for appointment as Non Executive Chairman’s.

Earlier News from The Wire

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