Public sector bank (PSB) boards are full of honourable men and women, but the quality of discussions during board meetings just doesn't live up to their exalted positions.
This is more than evident from the report of a committee headed by PJ Nayak on governance in bank boards. The committee, in fact, has done the unique job of analysing actual board notes to arrive at this rather damning conclusion.
The scrutiny of board deliberations suggests that PSB board members focus more on compliance with regulations and other trivial issues.
For example, in one bank, the taxi fare reimbursement policy took up more time than the loan recovery policy. Other issues discussed included purchase of office premises and provision of leased residential accommodation to officers.
In another bank, the board was more interested in discussing the details of a lecture by the chairman at a college; how extensive coverage can be given to the finance minister's visit to the bank; and disciplinary action against manager-level employees.
Text: Shyamal Majumdar, Business Standard
Image Courtesy: AP