public sector banks
22:38
Showing posts with label BBB. Show all posts
Showing posts with label BBB. Show all posts
Sunday, 3 September 2017
Monday, 10 July 2017
Reserve Bank of India
08:24
BBB recommends 15 names for executive directors appointment in PSU banks
BBB recommends 15 names for executive directors appointment in PSU banks
The BBB recommendations of 15 names for executive directors post in PSU banks would be sent to the Department of Financial Services to get Appointments Committee of Cabinet clearance
New Delhi: Banks Board Bureau (BBB) has recommended to the government names of 15 general managers of various public sector banks for appointment as executive directors.Officials said the recommendations were made by BBB chairman Vinod Rai and other members of the bureau. The list would be sent to the Department of Financial Services to get Appointments Committee of Cabinet (ACC) clearance, officials said. The ACC is headed by Prime Minister Narendra Modi.The interview for appointment to the post of EDs was held on 30 June. Besides former CAG Rai as chairman, the other members of BBB include Anil Khandelwal, former chairman and managing director of Bank of Baroda; H.N. Sinor, former joint managing director of ICICI Bank; and Roopa Kudva, managing director of Omidyar Network India Advisors. RBI deputy governor, financial services secretary and department of public enterprises secretary, are ex-officio members.Recently, the government expanded the BBB by inducting two more members with the objective of strengthening the panel responsible for selection of MDs and directors of public sector banks and financial institutions. Former Allahabad Bank chairperson and managing director Shubhalaxmi Panse and private equity player Pradip Shah have been inducted into the board as independent members.The BBB, set up in April 2016, was originally tasked to recommend names for chiefs of public sector banks and financial institutions and help state-owned lenders in developing strategies and capital-raising plans. The Bureau was authorised to suggest to banks on developing a robust leadership succession plan through appropriate HR processes, including performance management systems.
Source:Livemint
Wednesday, 5 July 2017
Monday, 29 May 2017
Friday, 7 April 2017
Merger of Banks
18:24
GOVERNMENT IS KEEN ON BANK CONSOLIDATION AND FOR THE MERGER MAY HAPPEN BETWEEN TWO LARGE BANKS IN OUR COUNTRY -BBB CHIEF SHRI VINOD RAI
GOVERNMENT IS KEEN ON BANK CONSOLIDATION AND FOR THE MERGER MAY HAPPEN BETWEEN TWO LARGE BANKS IN OUR COUNTRY -BBB CHIEF SHRI VINOD RAI
Source:AIUCBOF
Tuesday, 7 March 2017
public sector banks
18:09
Government agrees on the Employee Stock Option Plans (ESOPs) Offer by PSU banks
Government agrees on the Employee Stock Option Plans (ESOPs) Offer by PSU banks
The Finance Ministry has agreed in-principle to allow public sector banks to offer stock options to their employees from next fiscal -- a move aimed at retaining experienced hands with better incentives.
According to sources, Employee Stock Option plans (ESOPs) could be given by those banks which have not only earned substantial profit but also made remarkable improvement in managing NPAs.
It will help motivate employees to work towards strengthening the financial status of their banks so that their share value rises, sources said.
Although the Finance Ministry has given in-principle nod, the finer details are being worked out like what percentage of profit can be earmarked for ESOPs, sources said, adding, this is based on the suggestion of Banks Board Bureau (BBB).
One of the proposals is to issue shares equivalent to a certain percentage of banks' net profit to employees which is being examined.
For large banks, the ESOPs could be as much as 5 per cent of profit after tax while for the smaller ones, it could be about 3 per cent but no decision has been taken yet, sources said.
Apart from ESOPs, bonuses and other performance-linked packages are also being discussed as suggested by BBB, sources added.
ESOPs are common in the private sector, where companies offer stocks to reward and retain key and top-performing employees.
Since the employees stand to benefit from any appreciation in stock price, ESOPs also help in aligning the interests of the employees with those of shareholders.
Earlier in January, BBB chief Vinod Rai had said the compensation package across the board of public sector banks needs to be improved.
"Maybe we are not able to do much with the fixed part of compensation package but variable part we are hopeful that in the next financial year we will be able to introduce a far more attractive package which will have bonuses, ESOPs and other performance linked incentives as part of the package," he had said.
It can be monetary or non-monetary benefits to make it more attractive for professionals to enter public sector banking space, he had said.
Last year, the then RBI Governor Raghuram Rajan also made a case for offering ESOPs to bank staff.
"With public sector banks' shares trading at such low levels, a small allocation to employees today may be a strong source of motivation, and can be a large source of wealth as performance improves," Rajan had said.
Source:BankingUpdates
Wednesday, 28 September 2016
public sector banks
07:57
Banks Board Bureau recommends 9 names for PSB executive director post
Banks Board Bureau recommends 9 names for PSB executive director post
The Banks Board Bureau (BBB) today recommended nine candidates for the post of Executive Directors in various public sector banks.
The Chairman and members of the Banks Board Bureau have recommended to the government names of nine officers for being appointed as Executive Directors in PSBs, the bureau said.
The selected officers are Fareed Ahmed, Mrinal Kanti Bhattacharya, Atanu Kumar Das, P Ramana Murthy, Damodharan Neelam, Ashok Kumar Pradhan, A C Rout, S Hari Sankar and Swaminathan K, the Bureau said in a release.
These recommendations are based on interactions held by the Bureau with eligible candidates from PSBs towards appointment against existing and future vacancies of Executive Directors in PSBs for the period 2016-17.
The government will subject the recommended candidates to the necessary due diligence process before it makes the final decision on appointments.
The Banks Board Bureau has been formed to advise the government on top-level appointments at public sector lenders, will held its first meeting on April 8 this year.
Former CAG Vinod Rai is its Chairman.
Source:BankingUpdates
Wednesday, 17 August 2016
Reserve Bank of India
21:39
BBB should appoint top executives in state-run banks
BBB should appoint top executives in state-run banks
Outgoing Reserve Bank of India (RBI) governor Raghuram Rajan emphasised on improving governance in public sector banks and said the task of appointing top executives and non-official directors in these entities should be left to the Bank Board Bureau (BBB). The government, at present, appoints the chief executive, executive directors as well as other board members. Mr. Rajan’s suggestion is in line with the PJ Nayak committee proposal, which was set up by the RBI to look into the issue of governance in Indian banks. “A parallel task for public sector banks was to improve the governance and management,” Mr. Rajan said in his speech at the FICCI-IBA banking seminar. He suggested that as the BBB gains experience in appointment process, the final decision relating to appointments of executives and of non-official directors on bank boards should be left to it. The government has set up the BBB in February this year under the chairmanship of former comptroller and auditor general of India, Vinod Rai. At present, the BBB is involved in the short listing and selection process of public sector bank executives but the final appointment is made by the government...
Thursday, 4 August 2016
public sector banks
07:18
Public sector bank employees may get ESOPs from next April
Public sector bank employees may get ESOPs from next April
Over 800,000 employees working with different public sector banks (PSBs) could soon have a reason to cheer.
The government and the Banks Board Bureau (BBB) are in a hurry to announce employee stock ownership plans (ESOPs) for PSB employees, especially in the backdrop of the entry of 21 new small and payments banks, and a number of mid-management professionals reaching retirement age soon.
The government also wants to bring in “some” parity in the remuneration structure of state bank employees with their private sector peers. ICICI Bank, Axis and HDFC Bank, among others, regularly offer ESOPs to employees based on their performances.
The plan is likely to be in place by March next year, which means employees would be issued shares by April, government sources said. Each lender will have its own schedule and payment mechanism.
“We don’t want to have a one-size-fits-all formula for this... each bank will have its unique and independent scheme.. the plan is almost ready… the BBB is giving the final touches,” sources added.
The ESOP scheme for PSB employees is part of the seven-point reform programme — Indradhanush — announced by the government last year.
Besides giving ESOPs, the finance ministry and the BBB are looking at innovative ways to increase the compensation packages of employees. While, it is difficult to tamper with the fixed component of the package, the BBB is keen to increase the variable part. According to sources, a human resource policy is also likely to be worked out, comprising out-of-turn promotions and fancy postings within and outside the country. Bank officials may also be allowed to apply for jobs in other state-owned lenders. At present, postings are determined by the Centre.
“We are looking at innovative ways for the variable part. It may include ESOPs or increasing the amount of performance-linked incentives, or bonuses, or some other perks,” Vinod Rai, chairman, BBB, had earlier told HT.
Finance minister Arun Jaitley has also said that the government is considering offering ESOPs to PSB employees.
The plan, however, is likely to face opposition from trade unions. “Share prices will fluctuate and we don’t believe we will be owners of the banks if we get ESOPs... why should employees buy and sell shares?” said CH Venkatachalam, general-secretary, All India Bank employees Association (AIBEA) .
Source:Hindustan Times
Saturday, 7 May 2016
public sector banks
19:18
Banks Board Bureau kicks off selection process for top jobs in public sector lenders
Banks Board Bureau kicks off selection process for top jobs in public sector lenders
Taking its first big step, the newly-constituted Banks Board Bureau (BBB) will on May 16 conduct the selection process for managing directors in three public sector banks — Indian Overseas Bank, United Bank of India and Bank of Maharashtra.
This will be the first occasion where the BBB — which started functioning on April 1— goes about with its immediate priority of picking up the right candidates for the top jobs in public sector banks, sources in the banking industry said. It may be recalled that BBB Chairman Vinod Rai had on April 22 said that selection of senior management personnel to fill in existing and upcoming vacancies in PSBs will be an immediate priority for the Bureau.
The May 16 meeting may be confined only to the selection process of managing directors in the three PSBs. Indications are that the selection process for executive directors may be taken up on another date.
The main purpose for setting up the Bureau is to improve governance in public sector banks. While the Bureau is immediately focussed on selection of senior management personnel, it may, in the coming days, look at helping banks devise strategies for raising capital.
The BBB, which is chaired by former CAG Vinod Rai, comprises Anil Khandelwal, former chairman of Bank of Baroda, HN Sinor, a former joint managing director of ICICI Bank, and Roopa Kudva, Managing Director of Omidyar Network India Advisors. R Gandhi, RBI Deputy Governor, Anjuly Chibb Duggal, Financial Services Secretary, and Ameising Luikham, Secretary, Department of Public Enterprises, are ex-officio members.
The key difference this time round is that the RBI Governor will have no role in the selection process of senior management personnel in banks. The recommendation of the BBB will go to the government, which will take the final call, it is learnt.
Prior to the BBB, the government had, while overhauling the selection process (after the Syndicate Bank chairman episode), constituted three screening committees of two members each, comprising an RBI Deputy Governor, Financial Services Secretary and four experts. The recommendations of the committees were then processed by an appointments board headed by the RBI Governor.
Source:Banking Updates
Saturday, 23 April 2016
public sector banks
11:22
Banks Board to look at MD appointments
Banks Board to look at MD appointments
The newly-constituted Banks Board Bureau (BBB) will soon begin the selection process for appointment of managing directors at state-owned banks.
“A tangible decision is selection of MDs. We will start that immediately,” BBB chairman Vinod Rai said after the second meeting of the high-powered panel.
The Bureau was constituted earlier this year to select heads of state-run banks and to help banks develop innovative financial methods to raise capital, including mergers and acquisitions. It replaced the earlier appointment boards for selection of public sector bank (PSB) heads.
Rai said, “We are at a very preliminary stage. We will tell you about our priorities, we will tell you about terms of reference, we will tell you how we will take it forward.”
The Bureau is looking at a host of issues, including consolidation, stressed assets and capital infusion. And, at bringing the level of non-performing assets and how to boost lending.
The first meeting was on April 8. It was attended by Union minister of state for finance Jayant Sinha and Reserve Bank governor Raghuram Rajan, in Mumbai.
Other BBB members are H N Sinor, former joint MD at ICICI Bank, Anil Khandelwal, former chairman at Bank of Baroda and Rupa Kudwa, former head of rating agency CRISIL. Ex officio members are Ameising Luikham, secretary of the department of public enterprises, and Anjuly Chib Duggal, secretary, financial services.
BBB was one of the seven elements of the government's 'Indradhanush' strategy to revamp the functioning of state-run banks. It includes re-capitalisation, de-stressing of assets, empowerment, a framework of accountability and governance reforms.
The government will recapitalise PSBs with Rs 25,000 crore in 2016-17, followed by Rs 10,000 crore each in FY18 and FY19. It infused Rs 25,000 crore in 2015-16.
Source:Business Standard
Wednesday, 9 March 2016
public sector banks
07:13
Government may merge 27 public sector banks into just six
Government may merge 27 public sector banks into just six
With public sector banks under pressure to tackle their dismal bad loan scenario, consolidation is the way forward, and this could bring down the number of lenders to about six from the present 27, participants in the recently-held Gyan Sangam, a retreat for chiefs of public sector banks and financial institutions, told HT.
The time frame for the mergers will ensure there are no disruptions, the sources said. As banks are short-staffed, a downsizing would not be required, they said.
An expert committee, which will be soon set up to look into the issue, will closely work with the Banks Board Bureau (BBB) to identify the right matches for consolidation. The BBB, which will independently oversee consolidation and chalk out business plans for public sector banks, is set to be put in place by April 1, 2016.
Since it is not feasible to bring down the government’s share in state-owned banks below 51%, consolidation to create strong banks is the only survival option, the sources said. Issues such as technology, asset base, regional strength and cultural match would be critical in chalking out strategies and identifying banks.
“At present, public sector banks are fighting with each other for market share, but with so many payments and small finance banks coming in, the need is to consolidate and focus on strengthening the balance sheets to create big banks,” said a senior government official who did not wish to be identified.
The finance ministry is already looking to merge the newly-launched Bharatiya Mahila Bank.
Until now, the government has maintained that it would not have any role to play in the merger exercise of public sector banks. The official said that in case certain banks show unwillingness, despite plans being chalked out by the BBB and the expert committee, then the government would intervene.
Source:Hindustan Times
