FSIB recommends former Union Bank Chief Rajkiran Rai for NaBFID MD post

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).

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