The government may tap senior management of central public sector enterprises (CPSEs) such as Power Finance Corporation, ONGC and NTPC for non-executive posts and independent directors in public sector banks and financial institutions. The government could explore such synergies after the Department of Public Enterprises (DPE) was brought under the finance ministry in July this year. At present, 10 state-run lenders are functioning without an executive chairman. “We are looking at various possibilities including getting them on board as government nominees on banks and insurance companies,” said a government official. Retired board-level employees can also be engaged at other non-executive positions, the official said. “We can use the large database of DPE.” The government had issued a gazette notification on July 6 where among other roles, DPE will continue to look at measures aimed at improving performance of CPSEs and other capacity building initiatives of public sector enterprises.
There is a view that the quality of independent directors on bank boards needs to be upgraded and a larger database needs to be created, the above-quoted official said. Bankers, however, feel that the government should only have one nominee on their board and rather than CPSE employees, more executives from the private sector should be inducted on bank boards.