Mumbai, Sept. 28 -- Eight of India's 11 public sector banks, excluding State Bank of India (SBI), currently lack a non-executive chairman, with some vacancies persisting for years, pointing to prolonged appointment delays and raising questions about oversight at key financial institutions handling public money.

The role of a non-executive chairman at banks and other financial institutions is crucial, providing board leadership, broad policy direction and oversight of governance. The issue assumes greater significance in view of a new Reserve Bank of India (RBI) governance framework for banks, issued on 14 July and effective from 1 October. It says the chairperson has primary responsibility for setting the board's agenda, while the board ...