........It is easy to blame the malaise on wicked politicians, industrialists who have a stake in such appointments and pliant officials. The Nayak committee, which reviewed governance of bank boards earlier this year, said the boards are disempowered and the selection process for directors is being compromised.That means weak board governance. The committee reckons only radical reforms will work. Its blue print envisages bank boards being chosen by a Bank Boards Bureau comprising former bankers and then the bank boards themselves approving the selection process for CEOs. It also suggest a longer tenure for the CEO -which the finance ministry is also talking of now. On paper, it would be difficult to find fault with the selection process given that those who are part of it, including the secretary in charge of financial services and management professors from elite institutions, are not those who will just play ball.In almost all cases, vigilance approval also comes through. The question then is whether political pressure comes after that or before the final hurdle, forcing the leadership to settle for sub-optimal choices............
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