This refers to K V Rao’s letter to the editor “New Banks” (December 25). The Banking Laws (Amendment) Bill will surely provide opportunities to set up new private banks in the country. In the earlier phase, when new private banks came on the scene, it was felt that the public sector bank business would dry up, and the new private banks would take over.
That did not happen. In fact, the competition energised public sector banks to get their act together and advance in terms of technology and staff upgradation, designing and delivery of new products and services. It is in this context that the entry of more new banks – as a consequence of the latest amendments in the banking laws – will add to the competition and improve overall banking in the country. Public sector banks are here to stay and progress.
I K Kilam Faridabad
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