PSB boards need more teeth

Mumbai: Several posts of Directors at various state-run banks are lying vacant. Moreover, the posts of Workman Employee Director representing the employees

and Director representing Officers have been unfilled and remain vacant for the past 7 years. Similar is the position in the country's largest lender, State Bank of India, where also the posts of Workman Director and Office Director are unfilled.

It also runs counter to the much-professed principles of good governance.

All the nationalised banks are being managed and administered by the respective Board of Directors of these Banks. The constitution of the Boards of Directors of these Banks is governed by the provisions of Section 9 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 thereunder.

The posts of Workman Director and Officer Director representing the employees and officers of the Banks were incorporated in the Scheme since inception in 1970 and the same were being filled up for 44 years without interruption. However, from 2014, ever since the NDA Government took over, these posts remain vacant.Every post of Director representing different fields and interests is very important as envisaged in the Act.

"It will be appreciated that keeping such important posts ofDirectors of the Banks vacant and without filling up the same defeat the very purpose for which these posts were envisaged and created to take care of the varied interests and fields of banking operations of the Banks," says CH Venkatachalam, general secretary of All India Bank Employees' Association in his missive to the Finance Minister a copy of which has also been sent to RBI governor.

"Out of the 11 nationalised banks, All India Bank Employees Association (AIBEA) has submitted the panel of names to the concerned Banks and the Government as prescribed in the Scheme, but none of them has been appointed as Directors all these 7 years," Venkatachalam said.

According to Venkatachalam, "We learn that all the names submitted by our Association for the purpose of appointment as Workman Directors have been duly recommended by the concerned Banks to the Department of Financial Services in the Ministry of Finance, Government of India and all these proposals and recommendations are pending consideration by the Government."

These Boards of Directors of the Banks consist of Directors like Chairman, Managing Director and Executive Directors as well as persons representing Government, Reserve Bank of India and importantly representing various interests and fields including the employees and officers of the Banks.