Govt begins to walk the talk on governance in PSU banks
Govt begins to walk the talk on governance in PSU banks: Bank Boards panel lays down ethics code, compensation reforms framework...
"To prime public sector banks (PSBs) to hold their own against nifty private sector rivals and also prepare them for possible mergers in the future, the Bank Boards Bureau (BBB) has drawn up an elaborate Governance, Reward and Accountability Framework (GRAF).
The GRAF seeks to ensure that corporate governance at PSBs is in keeping with various pieces of legislation, including the Companies Act, 2013, Banking Regulation Act, 1949, and Securities and Exchange Board of India (listing obligations and disclosure requirements) Regulations, 2015.
Further, the framework abides by the guidelines of the Basel Committee on Banking Supervision on corporate governance principles for banks. Among others, the principles deal with the board’s overall responsibilities, board qualifications and composition, senior management, risk management function, compliance, internal audit and compensation."