Experience of Non Exec Dirs not used in credit underwriting decisions: BBB

The Banks Board Bureau has pointed out in its March 2018 report that recent episode of stressed asset build-up in Public Sector Banks (PSBs) makes it evident, in varying degrees, that PSBs have not derived full benefit from the collective experience, insight and diverse exposure that Non-executive Directors who were thought to bring to bear while taking credit underwriting decisions for large borrowers. Therefore, it cannot be stated with certainty that the participation of Non-executive Directors for underwriting large value proposals would fulfill the spirit of good governance.