• The Banks Board Bureau has its genesis in the recommendations of The Committee to Review Governance of Boards of Banks in India, May 2014. Thereafter, on February 28, 2016, the Government of India, announced the constitution and composition of the Bureau. The Bureau started functioning from April 01, 2016 as an autonomous recommendatory body.
• As part of its mandate, and guided by a spirit of collaboration, the Bureau is engaging with various stakeholders.
• The objective of such engagement being to help prepare the banks in the public sector universe to take on the competition, have the ability to appropriately manage and price risk across business cycles, develop resilience to generate internal capital and have the capacity to generate external capital warding of the moral hazard in counting on the scarce budgetary resources of tax payers.
• The Bureau is also engaging with the Public Sector Banks (PSBs) to help build capacity to attract, retain and nurture both talent and technology – the two key differentiators of business competencies in the days to come.
• In its endeavour, the Bureau is mindful of the need to have a fully empowered board in each and every PSB. While the Bureau is working towards attracting the best personages on the boards, it is these boards which should drive the overall strategy of a bank within its risk capacity and also act as custodians who should reconcile the diverse interests of various stakeholders.