Companies can appoint qualified female relatives on their board, says SBI Chief

In 2013, the business world saw a great reshuffle as many of the firms got their female family members on the company’s board after India revamped its laws and made it mandatory for listed companies to have at least one woman as a board member.

Taking a cue from this, Arundhati Bhattacharya, Chief of State Bank of India on Wednesday said that it is totally acceptable as long as they are eligible to hold the post and understand the nitty-gritty of their businesses. After Securities and Exchange Board of India started imposing fines on firms failing to abide by this policy from 2015, many companies jumped into appointing female board members thereby improving the skewed ratio of women in the workplace.

Bhattacharya is the first woman chairperson of SBI, India’s oldest and biggest public sector banking giant. According to the Forbes, she is one of the 5 powerful women in the world of finance. She rebuffed the common myth that there is a dearth of talented women for the board’s post. The International Labour Organization ranked India 121 out of 130 in terms of female participation in the workforce.

The main reason for women to fall off the corporate ladder is after embracing motherhood. Hence, she enforced a law that allows women to take a sabbatical of two years post their deliveries. She is also known to be vocal about her views on bad debts and the inability of Vijay Mallya to repay his loans. Investors are speculating whether she would continue as the head for the next term. Albeit, she has debunked a myth that a corporation’s responsibility cannot be in a woman’s hand.

Sources: Scroll.inEconomic Times


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