Govt moves to reform bank boards: The six new rules you should know

Experts say it won't be easy to appraise general managers because the board won't be knowledgeable enough

The government on Friday moved to reform the boards of public sector banks (PSBs), but fell short of giving up control over the top management appointments — considered to be the key to efficient functioning of PSBs.

Finance Minister Nirmala Sitharaman on Friday announced a host of measures aimed at making PSBs more efficient. These included allowing banks’ boards to appraise the performance of the senior management —from the level of general manager to managing director (MD).

Under current practice, general managers are appraised by executive directors, who are assessed by the MD. But there is no formal appraisal process for the