FSIB will be a single entity for making recommendations for appointments of executive directors, and non-executive chairmen in PSU banks, CMDs, general managers and directors of public sector insurers, said the DoPT order

With setting up of FISB, the selection exercises for general manager and directors in PSU insurers will start now, said MoF sources

New Delhi:

After a bit of confusion, the decks are now cleared for the appointments of new CMDs and directors in PSU insurers as the government has finally set up Financial Services Institutions Bureau (FSIB), to replace Banks Board Bureau(BBB), the head hunting agency for selecting top management of public sector banks and insurers.

FSIB can select MD & CEOs, executive directors and non-executive chairmen of Public sector banks (PSBs), CMDs, and general manager and directors (GMDs) of PSU insurers and other state owned financial institution.

The FSIB will continue to be headed by Bhanu Pratap Sharma former chairman, BBB, for the next two years or until further orders, said a communication from department of personnel and training (DoPT) on Thursday.

The Appointments Committee of the Cabinet (ACC), headed by the Prime Minister Narendra Modi, has cleared ministry of finance’s new proposal of replacing BBB with FISB on Thursday.

Guidelines for selection of general managers and directors (GMDs) of non-life PSU insurers have also been issued by the DoPT.

Earlier the Delhi High Court had struck down the power of BBB to select general manger and directors for PSU general insurers. Also currently there is a case pending in the Delhi HC on whether BBB has the due power to appoint CMDs in PSU insurers.

With setting up of FISB, the selection exercises for general manager and directors in PSU insurers will start now, said MoF sources adding that the interviews for selecting new CMDs for New India Assurance and Agriculture Insurance Company(AIC) can only happen after the Delhi HC’s final verdict which may be delivered on July 11.

The ACC has also approved the induction of Animesh Chauhan (former CMD , Oriental Bank of Commerce) (Ex banker from Public Sector category); Shailendra Bhandari (former MD & CEO of ING Vysya Bank, Centurion Bank of Punjab and ICICI Asset Management Company) (Ex banker from Private Sector category);  Deepak Singhal (former ED, RBI (Academician, or a former regulator, or a businessperson, or a former administrator category), into the newly formed FISB for the next two years.

Department of financial services will first carry out necessary modifications in the Nationalized Banks (Management and Miscellaneous Provisions) Scheme of 1970/1980 (as amended) with the approval of the finance minister, and then notify the government resolution for establishing FSIB as a single entity for making recommendations for appointments of whole time directors (WTDs) and non-executive chairmen (NECs) in public sector banks,insurers and FIs and Guidelines for selection of general manager and director (GMDs) in non-life public sector insurers (PSIs) modelled on the guidelines set aside, while substituting references to BBB with FSIB, said the DoPT order.