The Indian banks in the public sector (PSBs) still have to provide the standards for healthy corporate governance, since the majority of lenders have not filled in important positions on their boards and have been empty for years, according to answers received on RTI submitted by submitted by submitted by line.
Bank of Baroda, who should have 16 drivers, currently only has 10 – so that six important management positions remain empty, including that of chairman and CA director.
Central Bank of India has eight directors on the board, but has no chairman, MD & CEO and five other vacancies on the board. Union Bank of India currently has no MD & CEO either. Indian Bank and Punjab & Sind Bank each have the functions of approximately director and chairman vacant. (See table).
Shriram Subramanian, MD at Ingovern Research, says that PSBs and other entities in the public sector often mention the lack of or delay in the approval of their respective ministries for the appointment of directors in key positions. The term of office and responsibilities of directors are known and their appointment can be planned proactively, he says.
“Unfortunately PSB’s delay tactics. The PMO must ensure that such practices are not allowed and fines are made for wandering entities. Ex Sebi Chief Ajay Tyagi had said that most PSBs and other PSUs do not meet standards for Corporate Governance,” he said.
Devidas Tuljapurkar, joint secretary, Aibea, says that almost half of the board positions on PSBs have been empty for 10 years. “Cas, who normally takes on the function of a highly driven audit committee, is also vacant. Since SEBI guidelines ask for compulsory functions of shareholders directors, they are filled in, but most drivers are former MD or EDs of LIC or PSBs.” A majority of the reactions showed that the position of workers and non-workers has remained empty since almost the last decade.
Published on September 1, 2025
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