Lok Sabha Question No. 4 (STARRED), answered on 2021-11-29
Subject: Appointment of Directors in PSBs
Ministry: FINANCE
Asked by: Imtiaz Jaleel Syed

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO. *4

ANSWERED ON 29 th  November 2021 / Agrahayana 8, 1943 (SAKA)

## Appointment of Directors in PSBs

- *4.  Shri Syed Imtiaz Jaleel:

Will the Minister of FINANCE be pleased to state :-

- (a) whether the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980 provide for the representation of Chartered Accountants, Depositers, Agriculture, Cooperation, Law, Small Scale Industries and employees by way of their appointment  as  Directors  on  the  Board  of  Directors  of  the  Public  Sector  Banks (PSBs);
- (b) if so, the details thereof including the number of such Directors appointed during each of the last five years, PSB-wise; and
- (c) if such appointments have not been made, the reasons therefor?

## ANSWER

## THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

## REPLY

- (a) to (c): A statement is laid on the table of the House.

## Statement referred to in reply to Lok Sabha Starred Question no. *4 by Shri Syed Imtiaz Jaleel for 29.11.2021 regarding 'Appointment of Directors in PSBs'.

(a) to (c): Clause  (g)  of  sub-section  (3)  of  section  9  of  the  Banking  Companies (Acquisition  and  Transfer  of  Undertakings)  Act,  1970  and  1980  ['Act']  provides  for nomination of Chartered Accountant as Director on the board of eleven Public Sector Banks (PSBs) covered under the Act. Sub-section (3A) of section 9 of the Act provides that the persons nominated as Director under clause (h) or to be elected under clause (i) of subsection (3) shall have special knowledge or practical experience in the fields of agriculture, co-operation, law, small scale industries, any other matter the special knowledge of, and practical experience in, which would, in the opinion of the Reserve Bank be useful to the bank or represent the interest of depositors or represent the interest of farmers, workers and artisans. Clause (i) of sub-section (3) of section 9 of the Act provides that the Directors to be  elected  by  the  shareholders,  other  than  the  Central  Government,  from  amongst themselves. Further, clause (e) and (f) of sub-section (3) of section 9 of the Act provides for  nomination  of  employees  of  the  bank  as  Director  on  its  board.  Nomination  /  renomination of such directors on the board of these PSBs is carried out on ongoing basis based on the vacancies and verification report received from various Government agencies. The number of the directors nominated / re-nominated / elected in eleven PSBs in these categories during last five years is at Annexure .

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## Annexure as referred to in part (a) to (c) of the reply to Lok Sabha Starred Question no. *4 for 29.11.2021

Details  of  number  of  directors  nominated/  re-nominated  /  elected  in  eleven  Public  Sector Banks under Section 9(3)(e), (f), (g), (h) and (i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980

| S. No.   | Public Sector Bank     |   Year |   Number of Director |
|----------|------------------------|--------|----------------------|
| 1.       | Bank of Baroda 1       |   2016 |                    7 |
| 1.       | Bank of Baroda 1       |   2017 |                    5 |
| 1.       | Bank of Baroda 1       |   2018 |                    4 |
| 1.       | Bank of Baroda 1       |   2019 |                    2 |
| 1.       | Bank of Baroda 1       |   2020 |                    1 |
| 2.       | Bank of India          |   2016 |                    1 |
| 2.       | Bank of India          |   2017 |                    2 |
| 2.       | Bank of India          |   2018 |                    1 |
| 2.       | Bank of India          |   2019 |                    0 |
| 2.       | Bank of India          |   2020 |                    1 |
| 3.       | Bank of Maharashtra    |   2016 |                    2 |
| 3.       | Bank of Maharashtra    |   2017 |                    0 |
| 3.       | Bank of Maharashtra    |   2018 |                    1 |
| 3.       | Bank of Maharashtra    |   2019 |                    1 |
| 3.       | Bank of Maharashtra    |   2020 |                    0 |
| 4.       | Canara Bank 2          |   2016 |                    6 |
| 4.       | Canara Bank 2          |   2017 |                    1 |
| 4.       | Canara Bank 2          |   2018 |                    2 |
| 4.       | Canara Bank 2          |   2019 |                    5 |
| 4.       | Canara Bank 2          |   2020 |                    0 |
| 5.       | Central Bank of India  |   2016 |                    1 |
| 5.       | Central Bank of India  |   2017 |                    1 |
| 5.       | Central Bank of India  |   2018 |                    2 |
| 5.       | Central Bank of India  |   2019 |                    0 |
| 6.       | Indian Bank 3          |   2016 |                    3 |
| 6.       | Indian Bank 3          |   2017 |                    3 |
| 6.       | Indian Bank 3          |   2018 |                    3 |
| 6.       | Indian Bank 3          |   2019 |                    3 |
| 6.       | Indian Bank 3          |   2020 |                    0 |
| 7.       | Indian Overseas Bank   |   2016 |                    1 |
| 7.       | Indian Overseas Bank   |   2017 |                    4 |
| 7.       | Indian Overseas Bank   |   2018 |                    0 |
| 7.       | Indian Overseas Bank   |   2019 |                    0 |
| 7.       | Indian Overseas Bank   |   2020 |                    0 |
| 8.       | Punjab &Sind Bank      |   2016 |                    1 |
| 8.       | Punjab &Sind Bank      |   2017 |                    4 |
| 8.       | Punjab &Sind Bank      |   2018 |                    1 |
| 8.       | Punjab &Sind Bank      |   2019 |                    0 |
|          |                        |   2020 |                    0 |
| 9.       | Punjab National Bank 4 |   2016 |                    3 |
| 9.       | Punjab National Bank 4 |   2017 |                    7 |
| 9.       | Punjab National Bank 4 |   2018 |                    2 |
| 9.       | Punjab National Bank 4 |   2019 |                    1 |
| 9.       | Punjab National Bank 4 |   2020 |                    0 |

|   S. No. | Public Sector Bank    |   Year |   Number of Director |
|----------|-----------------------|--------|----------------------|
|       10 | UCO Bank              |   2016 |                    1 |
|       10 | UCO Bank              |   2017 |                    2 |
|       10 | UCO Bank              |   2018 |                    0 |
|       10 | UCO Bank              |   2019 |                    1 |
|       10 | UCO Bank              |   2020 |                    0 |
|       11 | Union Bank of India 5 |   2016 |                    2 |
|       11 | Union Bank of India 5 |   2017 |                    6 |
|       11 | Union Bank of India 5 |   2018 |                    6 |
|       11 | Union Bank of India 5 |   2019 |                    2 |
|       11 | Union Bank of India 5 |   2020 |                    0 |

- Note 1: Dena Bank and Vijaya Bank amalgamated on 1.4.2019 with Bank of Baroda. The data of Bank of Baroda includes data of Dena Bank and Vijaya Bank.
- Note 2 :  Syndicate Bank amalgamated on 1.4.2020 with Canara Bank. The data of Canara Bank includes the data of Syndicate Bank
- Note 3 :  Allahabad  Bank  amalgamated  on  1.4.2020  with  Indian  Bank.  The  data  of  Indian  Bank includes the data of Allahabad Bank
- Note 4: Oriental  Bank  of  Commerce and United Bank of India amalgamated on 1.4.2020 with Punjab National Bank. The data of Punjab National Bank includes the data of Oriental Bank of Commerce and United Bank of India
- Note 5: Andhra Bank and Corporation Bank amalgamated on 1.4.2020 with Union Bank of India. The data of Union Bank of India includes the data of Andhra Bank and Corporation Bank.

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