RBI Gov calls for stronger boards at state-run lenders

MUMBAI Wed Aug 6, 2014 4:10pm IST

Reserve Bank of India (RBI) Governor Raghuram Rajan attends a seminar organised by the University of Chicago in New Delhi March 28, 2014. REUTERS/Anindito Mukherjee/Files

Reserve Bank of India (RBI) Governor Raghuram Rajan attends a seminar organised by the University of Chicago in New Delhi March 28, 2014.

Credit: Reuters/Anindito Mukherjee/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The Reserve Bank of India Governor Raghuram Rajan said the boards at domestic public sector banks needed to be strengthened while the incentive structure for chief executives of these lenders need to be improved to enhance corporate governance.

Rajan, in an interview to ET Now television, also said salaries of public sector bank executives needed to be revised to bring them at par with salaries of executives at privately-owned lenders.

"We have to draw in people from the private sector who want to give back themselves, and in that way you will get talent into these public sector enterprises," Rajan told ET Now.

The comments come after police arrested the chairman of mid-sized state-run lender Syndicate Bank Ltd (SBNK.NS) late on Saturday over allegations of taking bribes to grant loan extensions to a company.

(Reporting by Neha Dasgupta and Himank Sharma; Editing by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage