Leadership Development Programme

General Studies Paper 2

The FSIB has asked the Indian Banks’ Association (IBA) to appoint an institution or firm to design and deliver a leadership development programme for PSU banks (PSBs).

• Recently, Financial Services Institutions Bureau (FSIB) stated it will select top officials of banks via a grooming process under a leadership development programme.
• The programme aims to groom business leaders of the PSBs who should be ready to assume top management and board level positions in PSBs and to drive long-term sustainable business in a competitive market place
• The firm which will design and execute the programme will be selected by the IBA through a bidding process.
• The objective is to develop future generation of leaders who are digitally savvy, strategic thinkers with capability to build highly collaborative teams and create a customer centric organisation that thrives in a very dynamic competitive environment.
• The programme will up-skill around 75 participants in the senior management.
• The proposed firm should have capability to design and deliver a training programme for senior officers of PSU banks that can be delivered through three modes — online as e-learning modules, online through live webinars, meetings and through in-person mode.

Financial Services Institutions Bureau

• Recently, Cabinet Appointments Committee (ACC) has passed a government resolution to establish the Financial Services Institutions Bureau (FSIB) in place of the Banks Board Bureau (BBB).
• The Financial Services Institutions Bureau will select the chiefs of public sector banks and insurance companies.
• The FSIB will have the clear mandate to issue guidelines and select general managers and directors of state-run non-life insurers, general insurers and Financial Institutions.
• FSIB will be the single entity for making recommendations for appointments of WTD (Whole-time Director) and NEC (Non-executive Chairman) in Public Sector Banks, India Private Limited company and Financial Institutions.
• The ACC has approved the appointment of Bhanu Pratap Sharma as Initial chairperson of FSIB for two years. He was the former Chairman of BBB.

Banks Board Bureau (BBB)

• The government, in 2016, approved the constitution of the BBB to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.
• It was an autonomous recommendation body.

Issues

• Delhi High Court had struck down the BBB’s power to select directors of Public Sector Undertaking, general insurance companies
• Delhi High Court in 2020 ruled that the BBB couldn’t select the general managers and directors of state-run general insurers, as it was not a competent body.