The setting up of this council follows consultancy firm Arthur Andersen's recommendations that IBA needs to set up a council to bring corporates and bankers together to work closely.

The 12-member council consists of noted management consultant MB Athreya, disinvestment commission chairman GV Ramakrishna, former India head of Procter and Gamble Gurucharan Das, Reliance vice-chairman and managing director Mukesh Ambani, Rediff head Ajit Balakrishnan, noted Supreme Court advocate Dinesh Vyas, economist Omkar Goswami, former Hindustan Lever chairman SM Dutta and noted accountant YH Malegam among others.

IBA secretary MN Dandekar said that the setting up of the panel will help bankers to know the industry's views and both can work more closely together now. "Thecouncil will provide a close linkage with the industry," Dandekar said. The council is expected to meet once in three months and advise the bankers body on the changing faces of Indian corporates. Arthur Andersen had recommended to the IBA that it needed to work closely with the industry in its report submitted a few months back.

The consulting firm had also recommended that the IBA reorganise itself by opting for a three-tier structure. It was recommended that the secretary should be assisted by four full-time directors who in turn would be assisted by deputy directors. Sources said that the selection of the directors is still on. According to Dandekar, the advisory council would meet quarterly and the views of the committee would be conveyed to the management committee of IBA which is headed by Union Bank of India chairman AT Paneer Selvam.