With reference to the editorial, “Chasing rainbows”, rural banking cooperatives, precursors to modern banks, could not be improved in decades. Their ills of dual control and partisan interests were imbibed by public sector banks (PSB), leading to unprofessional management systems.
Changes in the regulatory framework, rising customer expectations, shift in employee demography and changes in technology have emerged as key drivers for PSBs.
They must gear up to meet demands from an expanding economy; optimise resources; increase their presence across the value chain; renew focus on research, development and innovation; create a better performance culture and service customer demands effectively.
The government must cut its stake in PSBs
to raise fresh capital through the divestment route, aid in systematic recapitalisation and, more importantly, bring in leadership that is free to perform with ability and authority.
R Narayanan, Ghaziabad
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