Reconstituted BBB to take forward suggestions of predecessor: Finmin

The reconstituted Banks Board Bureau under B P Sharma will "take forward" various HR related recommendation made by his predecessor Vinod Rai, Financial Services Secretary Rajeev Kumar said today.

The government has appointed Sharma, the former DoPT secretary, as the chairman of the advisory panel for two years, replacing Rai whose term ended on March 31.

"I have mentioned in my communication (to the reconstituted BBB) that take forward all the recommendations made by (Rai-led) BBB. It is a very good foundation that they have laid.

"Recommendations on training, HR, lateral entry, on various other HR issues will be put before the BBB and taken forward," Kumar told reporters here.

He said they relate to empowering the management with regard to capacity building, HR, appraisals, training and how you create an environment at the middle level (to curb attrition), how to attract best from outside.

"All recommendation of BBB relating to appointment at PSBs (public sector banks) has been effected," Kumar said.

Sharma is currently the Chairman of Recruitment and Assessment Centre at Defence Research and Development Organisation (DRDO).

Three other new members of BBB are: Vedika Bhandarkar (former Vice chairman and MD of Credit Suisse India), Pradip Shah (founder MD at Crisil ratings agency) and P Pradeep Kumar (former MD at SBI).

Kumar said all the members of the reconstituted BBB have "diverse experience". Sharma was chosen by the government as he has "wide experience on Human Resource issues", and has served as Secretary Department of Personnel and Training (DoPT), he said.

Days before his two year term came to an end, Rai, a former CAG, had expressed displeasure over a lack of communication between the BBB and the finance ministry.

He had said that most of the BBB's recommendations have not received due attention from the government and it has been merely working as an appointment board since inception.

It had also sought wider mandate from the government including advising the government on PSB consolidation in the least disruptive manner.

Rai had later dismissed reports of lack of coordination between the BBB and the government saying that the rapport was "total" and he often met Finance Minister Arun Jaitley and received guidance from him.

Prime Minister Narendra Modi in 2016 approved the constitution of BBB as a body of eminent professionals and officials to make recommendations for the appointment of Whole-time Directors as well as non-Executive Chairmen of PSBs.

They were also given the task of engaging with the Board of Directors of all the public sector banks to formulate appropriate strategies for their growth and development.

"The Bureau will recommend for selection of heads - Public Sector Banks and Financial Institutions and help Banks in developing strategies and capital raising plans," states the 2016 mandate of the BBB.