Need to make banks more professional: GS Sandhu, Banking Secretary

In a chat with ET Now, GS Sandhu, Banking Secretary, speaks on the need for improving the governance in banks. Excerpts:

ET Now: What is being done to improve the governance in banks?

GS Sandhu: Some of the proposals are under consideration for improving the governance in banks, mainly the public sector banks. We are still working on this and as soon as things are finalised, we will be issuing the orders.

ET Now: What kind of proposals are you working on?

GS Sandhu: Some of these proposals pertain to making banks more professional. The board of directors should be more professional and splitting the post of CMD into chairman and MD and the longer tenure for the CMD, MD and chairman.

ET Now: Are you also looking at bringing in independent directors on the board of these banks?

GS Sandhu: Yes, we are trying to improve the quality of independent directors.