........In effect, PSBs are subject to dual regulation by the finance ministry and RBI. All PSB board directors are appointed by the government based on criteria that are often not clear. Handicapped by the lack of specialist skills, the quality of PSB board deliberations tends to be poor and focussed more on tactical issues than on providing strategic direction3. The average tenures of PSB chairmen and executive directors are very short, and the process of promoting talent to senior positions has become bureaucratised. Compensation structures have also grown distorted such that ..........
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