**Summary:**
This document summarizes the Indian Ministry of Finance's response to Lok Sabha Unstarred Question No. 1323, addressed on July 28, 2025, regarding the appointment of Independent Directors in Public Sector Banks (PSBs). The query sought information on the number of sanctioned posts for Independent Directors, reappointments made in April 2025, and the status of appointments in leading banks like State Bank of India, Bank of Baroda, Punjab National Bank, and Bank of Maharashtra.
The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, clarified that the State Bank of India Act, 1955, and the Banking Companies Acquisition and Transfer of Undertakings Act, 1970/1980, which govern the establishment and functioning of PSBs, do not specifically envisage the category of "independent directors" in the composition of their respective Boards. The composition of the Central Board of the State Bank of India is defined in Section 19 of the 1955 Act, while that of the Boards of Directors of nationalized banks is defined in sub-section 3 of section 9 of the 1970/1980 Act. Therefore, the premise of the question concerning the appointment and reappointment of "independent directors" as typically understood is not applicable under the existing legal framework governing these PSBs.
Key Entities Referenced
SHRI AMRA RAM: Member of Parliament who raised the question regarding appointment of Independent Directors in PSBs.
Public Sector Banks: Refers to banks owned by the government.
SHRI PANKAJ CHAUDHARY: Minister of State in the Ministry of Finance, who provided the answer to the question.
State Bank of India: A leading Public Sector Bank in India.
Bank of Baroda: A nationalized bank in India.
Punjab National Bank: A major Public Sector Bank in India.
Bank of Maharashtra: A Public Sector Bank in India.
State Bank of India Act, 1955: Act governing the establishment and operation of the State Bank of India.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1323
ANSWERED ON MONDAY, JULY 28, 2025/SRAVANA 6, 1947 (SAKA)
Appointment of Independent Directors in PSBs
†1323. SHRI AMRA RAM
Will the Minister of FINANCE be pleased to state:
(a) the number of sanctioned posts of Independent Directors in all Public Sector Banks;
(b) whether Independent Directors have been reappointed for one year in some nationalized
banks in April 2025 and if so, the bank-wise details thereof;
(c) whether even after these appointments, Independent Directors (except shareholder,
Government and RBI nominated directors) have not been appointed in the leading banks
of the country like State Bank of India, Bank of Baroda, Punjab National Bank and Bank
of Maharashtra; and
(d) if so, the time by which the reappointment of Independent Directors in the above banks
is likely to be made?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a), (b), (c) & (d) Public Sector Banks are established by special Acts, namely, the State Bank
of India Act, 1955 ("1955 Act") and the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970/1980 ("1970/1980 Act"). The composition of the Central Board of
the State Bank of India is provided for in section 19 of the 1955 Act and that of the Board of
Directors of nationalised banks is provided for in sub- section (3) of section 9 of the 1970/1980
Act. The category of "independent directors" is not envisaged in the composition of the Board
/ committee under these Acts.
****