Seven-point action plan to revamp state-run banks

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New Delhi: The government on Friday unveiled a seven-point action plan to revamp state-run banks, including a new policy under which each bank will be monitored based on key performance parameters, providing more incentives to bank management based on their performance and the flexibility to hire permanent staff at the middle level.The government also unveiled the structure of a seven-member bank board bureau that will replace the existing appointments process as well as provide advisory services to state-run banks. It will also help in the eventual transition to a bank holding company wherein the stake of the government in state-run banks will be transferred to this entity.

It also announced appointments of chief executive officers for five state-run banks, hiring two from the private sector, as well as non-executive chairman for banks. “Some steps have been taken and some more will be taken in the coming months,” said finance minister Arun Jaitley.