Closer scrutiny of independent directors likely amid IndusInd Bank row

RBI's vetting process may become more intense as banking industry looks for people skilled to be 'effective board members'

The role of independent directors (IDs) on the boards of private banks may come under closer scrutiny following the blowout at IndusInd Bank.

 

While the Reserve Bank of India (RBI) does take bank board deliberations into its annual inspections, the stress on governance premium and the events at IndusInd Bank may intensify the gaze on IDs, said multiple banking sources on the condition of anonymity given the sensitivities involved.

 

“One of the most important skills needed for being an effective board member is the ability to see beyond the presentations and connect the dots without getting lost in siloed topics.