Shedding govt stake may not make banks efficient, says Jairam Ramesh

He said there were compelling reasons for bank nationalisation. The timing was political

Amid corporate governance issues in ICICI Bank, veteran Congress leader Jairam Ramesh tells Ishan Bakshi that he is not sure whether bringing  government stake below 50 per cent would bring in accountability in the banking system.  Ramesh, who has authored a book titled ‘Interwined Lives’, talks about the days of bank natinalisation, Indira Gandhi and PN Haksar, among others. Edited excerpts:

In light of the current state of public sector banks, do you think nationalisation of banks is a correct decision? 

I think there were compelling reasons for bank nationalisation. The timing was political. But the rationale was economic. Interestingly, both Indira