What is Banks Board Bureau (BBB) ?
- BBB will be a super authority (Autonomous Body) of eminent
professionals and officials for public sector banks (PSBs).
- It will replace the Appointments Board of Government.
- The bureau was announced by the Union Government in August
2015 as part of seven point Indradhanush Mission to revamp the PSBs.
- It will give recommendations for appointment of full-time
Directors as well as non-Executive Chairman of PSBs.
- It will give advice to PSBs in developing differentiated
strategies for raising funds through innovative financial methods and
instruments and to deal with issues of stressed assets.
- Guide banks on mergers and consolidations and also ways to
address the bad loans problem among other issues.
- Currently, there are 22 state-owned banks or PSBs in India
including State Bank of India (SBI), IDBI Bank and Bhartiya Mahila Bank etc.
- Comment Government wants BBB to restructure business
strategy of PSBs and also suggest way forward for their consolidation and
merger with other banks as they are grappling with a huge problem of bad loans
and high collective gross NPAs (Non-Performing Assets).