FSIB recommends former Union Bank of India MD for post of NaBFID MD

The Centre, earlier this month, transformed the Banks Board Bureau into FSIB and expanded the headhunter's role to suggest appointments for PSU banks, insurance companies and financial institutions

The Financial Services Institutions Bureau (FSIB) has recommended former Union Bank of India managing director Rajkiran Rai as the head of government-owned development finance institution (DFI).

As part of its first appointment after getting restructured, the FSIB interviewed five candidates for the position of managing director of National Bank for Financing Infrastructure and Development (NaBFID). The Centre, earlier this month, transformed the Banks Board Bureau (BBB) into FSIB and expanded the headhunter’s role to suggest appointments for public sector banks, insurance companies and financial institutions.

After initially failing to attract adequate response for candidates for the post of MD of NaBFID, the Centre had lured applicants with a hefty pay package and relaxed the eligibility criteria. The FSIB, in its earlier avatar, had notified that the total compensation — total of fixed pay and performance bonus — will not exceed Rs 3.36 crore per annum. This was against a previous notification that merely stated that salary for NaBFID’s head would be market driven. The criteria for the experience of candidates at the board-level position was also to at least two years from three years earlier.

The DFI is looking to commence its operations soon. The Centre, in October 2021, had appointed K V Kamath as chairperson of the government-owned DFI. Subsequently, government nominees Pankaj Jain and Sumita Dawra were appointed directors to the board of DFI.

The government has already infused Rs 20,000 crore into NaBFID to help the DFI start its operations to catalyse investment in the infrastructure sector.