Bank Board Bureau (BBB) was formed with a view to improve the Governance of Public Sector Banks (PSBs). BBB is an autonomous body which will recommend selection of heads of Public Sector Banks and Financial Institutions and help Banks develop strategies and firm up capital raising plans. BBB is headed by former Comptroller-Auditor General of India, Mr. Vinod Rai. BBB Comprises of three members from banking and related industries and three ex-officio members appointed by Government of India.
Key Functions of BBB
- Recommendations of appointments to leadership positions and board members of public sector banks, including the whole-time directors and the top bank management, to professionalize and depoliticize the appointment process
- Advise the banks on ways to raise capital funds (It is estimated that PSBs need Rs. 1.8 Lakh Crore as capital infusion out of which government agreed to invest Rs. 0.70 lakh Crores leaving Rs. 1.1 Lakh Crores which banks have to raise from elsewhere)
- Preparation of roadmap and guiding the PSBs during the process of mergers and acquisitions.