The new committee headed by Arun Jaitley to oversee public sector bank (PSB) mergers should think out of the box.
First, recognise that the bottom 10 banks cannot become viable under government control and the prevailing PSB culture; no amount of capital infusion by the government will suffice.
These banks must be sold to private equity funds [PE] with a minimum of 51 per cent holding, with a call option for the government or other PSBs to buy them back after, say, a minimum of five years and a maximum of 10 years at a predetermined price formula. PEs will bring in
