Lok Sabha Question No. 501 (UNSTARRED), answered on 2023-07-24
Subject: Public Sector Banks Working without Chairpersons
Ministry: FINANCE
Asked by: Karti P. Chidambaram

## GOVERNMENT OI.'INDIA MINISTRY OF FINANCE DI]PARTMEN'T OF' FINANCI AI, ST]RVICES

## LOK SABHA UNSTARRED  QUESTION  NO. 50I ANSWERED  ON Jtjr.Y 24,20231 SRAVANA 2, 1945 (SAKA)

## PTJI}I-IC SEC'I'OR I}ANKS WORKING  WI'III()T'T  (]IIAIITPERSONS

## 50I. SHRI KAR'I'I P. CHIDAMBARAM:

Will the Minister  of FINANCII be pleased to state:

- (a) whether it is a fact that six ofthe eleven  Public  Sector  Banks  in the country  are currently without  a non-executive  Chairperson;
- (b) ifso. the details  ofthese  banks  thereofand  the reasons for the vacancy therefor;
- (c) the year when the vacancy first arose, bank-wise:
- (d) whether the absence ol non-execulive Chairperson  impacts  the functioning and decision-making  processes ofthese Public Sector Banks. if so, the details thereof;
- whether  the Govemment has initiated  any measures to address this issue and appoint competent and qualified individuals  as Chairpersons  for the banksl and (e)
- if so, the timeline  of thc implementation of thcse measures thereof? (f)

## rHE MINTsTER oF srArll:XXX *,*,rr*Y oF FTNANCE (DR. BHAGWAT  KARAD)

(a) to (c): The provision  lor separation  of posts olChairman and Managing  Director in Public Sector Banks  (PSBs) and appointment of separate persons for these posts from the vacancy year 2014-15 onwards  was made  in April'2015. Subsequent  to this. non-Executive Chairman (NEC) have been appointed in 9 banks  (out of I I nationalised banks)  that include  Bank of Baroda.  Bank of lndia.  (lanara  Bank. Central  Bank of India, lndian []ank. lndian Overscas Bank, Punjab  National  Bank. Punjab & Sind Bank and Union Bank of India.

At present  the position  of NEC in Bank of lndia.  Bank of Maharashtra,  Central Bank oflndia. Indian Bank, Indian Overseas  Bank and UCO Bank is vacant. The detail olthe year when the vacancy first arose. bank-wise  is at Annexure.

(d) to (0: NECs in PSBs prcside over the meetings of the Board and Committees  of Board. wherever they are appointed  as Chairperson ofthe such Committces.  'l'hey  do not participale in day to day business and in the management funclions  ol the banks.  As per the provision contained in paragraph  l2(6) ol the Nationatised  Banks (Management and Miscellaneous Provisions) Scheme 1970 and 1980, in the absence of the Chairman. the Managing Director shall preside  over the meeting  ofthe board.

Government has constituted Financial Services Institutions  Bureau  (earlier  known  as Banks Board  Bureau),  which is mandated  to recommend persons  for appointment  as NECs in PSBs.

## Annexure

## Lok Sabha Unstarred question no. 501 for 24.7.2023  regarding  public Sector Banks Working without Chairpersons

| S.No   | Name of the Bank      | Date of vacancy   |
|--------|-----------------------|-------------------|
| I      | Bank of India         | 14.8.2020         |
| 2      | Bank of Maharashtra   | 22.4.201s         |
| ,      | Central Bank of India | 23.5.2021         |
| 4      | Indian Bank           | 1 4.8.20 r 8      |
| 5      | Indian Overseas Bank  | 16.2.2020         |
| 6      | UCO Bank              | 22.4.20t5         |