........The discovery that Sunil Gupta, a director on the board of Canara Bank was related to former railway minister Pawan Kumar Bansal, has raised a justifiable furore. He made his entry on the board as a part-time government nominee and then just before the end of his three-year term, was elected as a shareholder director because of his closeness to Mr Bansal, who was then the minister of state for finance. The case clearly calls for a thorough appraisal of the system of appointment of directors on the boards of public sector banks (PSBs). Whether or not Sunil Gupta influenced the bank to get undeserved loans for Bansal’s companies is a separate issue, which is under investigation............
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In a recent interview given to a mainstream financial daily, RBI Deputy Governor Dr K C Chakrabarty lamented: ‘If bank boards are not capable, nothing much can be done’ If Dr Chakrabarty meant what he said (some are of the view that he was telling the obvious…), RBI and GOI should take responsibility and take immediate steps to put in place ‘boards which are capable’. And this applies to selection procedure to all top positions in government, statutory bodies and PSUs including Public Sector Banks. Perhaps political leadership also need to do some introspection.Unless each political party, irrespective of their allegiance to ruling 'coalition' or opposition should maintain a 'think tank' for keeping abreast of the developments, arrange study/research to find out what is good for the country and advise those who are placed in various positions because of their family background, capacity to raise funds, oratory, influence in various fields, various 'constituency pulls and pushes and so on. The present method of leaving everything, from panchayat election to choice of presidential candidate to 'boss' or 'madam' is not in the best interest of the country.
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