Friday, August 25 2006 11:29 Hrs (IST) - World Time -

New Delhi: Parliament yesterday (Aug 24, 2006) approved a bill for giving more flexibility to Board of Directors and improve corporate governance standards in public sector banks after Rajya Sabha passed it by voice vote.

The Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Bill, 2005, which includes the amendments suggested by the Standing Committee of Parliament, was passed by the Lok Sabha yesterday (Aug 24, 2006).

The Bill includes a number of provisions for giving greater flexibility to the Board of Directors and improve corporate governance norms in state-run banks.

The Bill, which was cleared by the Union Cabinet in May this year, also envisages increasing the number of whole-time Directors from two at present to four, besides making government share transferable.

It would also help bring public sector banks in tune with changing global scenario and modern business practices.