Letters: Same old problem for PSBs

This refers to Pratip Kar's article "Public sector banks can get a BIC leap forward" (June 10). A Bank Investment Company (BIC) is the latest concept offered by the P J Nayak Committee that would dislodge the government's ownership in public sector banks (PSBs) for good reasons. Assuming that the new government accepts the committee's recommendations, is it possible that the current problems of PSBs would be solved? The short answer is yes, but in the long run, no.

The Nayak Committee addresses only the ownership issue, and the control and interference that comes with it. What about the operational issues in PSBs and the stubborn responses of its huge manpower? Poor customer service, lethargic approach to business development, the "clock-watching" approach of the staff and low productivity have all played havoc with the operational efficiency of PSBs.

The politicisation vagaries practised by the United Progressive Alliance government led to the the appointment of the Nayak Committee. It would be wrong to assume that the current Bharatiya Janata Party government is also old wine in a new bottle and so the committee's recommendations are still relevant. The best thing is to adopt a "wait-and-watch" policy as far as government interference is concerned. This can be done by the banking regulator. It is another matter to assume that the recommendations of the P J Nayak Committee constitute a firewall against government interference and so it would be prudent to implement them.

K V Rao Bangalore

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