What is Banks Board Bureau (BBB) ?

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).