SBI arms told to assess directors

The Reserve Bank of India (RBI) has asked associate banking entities of State Bank of India to set up a panel of directors to assess "fit and proper" status of existing elected directors and proposed candidates to work on the board.

The three-member panel should determine "fit and proper" status on criteria such as educational qualifications, experience and field of expertise and track record and integrity.

This is just an illustrative list of heads to judge directors, RBI said in communication to chiefs of SBI's associate banks.

The committee should see whether the non-adherence to any criteria would hamper the existing elected director or the proposed candidate from discharging the duties as a director.

Further, the candidate who was an insolvent or was in default would be unfit and improper to work as director of the bank, it added.