Letters: PSBs and private banks

This refers to Rajiv Lall's article "'Minimum government, maximum governance' in public sector banks" (August 27). It is true that public sector banks (PSBs) are in the news for all the wrong reasons. But comparing PSBs with private banks is like comparing apples and oranges. PSBs were formed with the motive of rescuing an agrarian society from private money lenders and to infuse government help in the form of agriculture subsidies, which has been fulfilled to a large extent. Meanwhile, private banks exist for the benefit of the shareholders by augmenting profit. The governance in PSBs can only be improved with the right tools and effective implementation of policies.

Ravi Kant Gurgaon

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