In an attempt to stress leadership skills in state-run banks, two consulting firms, Banks Board Bureau (BBB) have appointed Egon Zehnder International Pvt. Ltd and Hay Consultants to assist them in developing strategies for top bank management.

These appointments come at a time when public sector banks have been grappling to elect quality people in senior management roles. Additionally, constant efforts are being made by the government and the Reserve Bank of India (RBI) to strengthen public sector banks suffering from substantial levels of non-performing assets (NPAs) and losses.

Egon Zehnder has been appointed as a knowledge partner to the Banks Board Bureau to design, implement and institutionalize a flagship leadership development strategy for state-run banks in India. Th global management consulting and executive search firm were also engaged with Axis Bank to find a successor to Shikha Sharma. The other firm, Hay Consultants, part of the Korn Ferry Group, has been selected to assist the Banks Board Bureau in assessing the leadership competencies and potential capabilities of people appearing for the post of whole time directors in state-run banks.

It is said that the effort to bring in experienced professionals as whole-time directors is part of the  Banks Board Bureau's focus to assure more effective monitoring of decisions taken by bank management.

Recently, in April this year, the government had overhauled the Bank Boards Bureau under its new chairman Bhanu Pratap Sharma. Pradeep Kumar, former Managing Director of State Bank of India, and investment banker Vedika Bhandarkar were also inducted into the board. Pradip P. Shah is the fourth member.

Banks Board Bureau has the responsibility of finalizing candidates for the posts of Managing Director and Executive Director at state-run banks.