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Letter to BS: Public sector banks need a new governance structure

Owing to capital infusion, the banks will resort to increased provisioning and accordingly, the level of net non-performing assets will go down

PCA Banks
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PCA Banks

Business Standard
This refers to the editorial “Beyond PCA” (February 28). The phased infusion of fresh capital during 2017-18 and 2018-19 by the central government enabled six public sector banks to come out of the prompt corrective action (PCA) framework of the Reserve Bank of India. Notwithstanding the lifting of restrictions on lending activities of those banks, they need to be selective while deploying funds to curtail various risks, ensure quality of assets and optimise returns. 

Owing to capital infusion, the banks will resort to increased provisioning and accordingly, the level of net non-performing assets will go down. As a result, the lending

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First Published: Feb 28 2019 | 9:40 PM IST

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