Bank Investment company (BIC) should be set up as holding company to hold the Government's shares in PSBs. The Government should set up BIC as a company under the Companies Act. The Government's shares in PSBs should be transferred to BIC. This transfer of shares should be accompanied by an agreement under which the role of the Government would only be to lay down the broad targets to be met by BIC.
On the other hand, the BIC would have complete autonomy in the management of PSBs, including making appointments to the Board of Directors. It will be professionally managed by experts and would be responsible to meet the targets set by the Government.
