Call for paring govt stake in public sector banks, greater board autonomy

The discussion also touched upon the objective of ensuring that at least two public sector banks feature among the world's top 20 banks

Granting greater autonomy to the boards of public-sector banks (PSBs), diluting the government’s stake in them, and leaving their regulations to the Reserve Bank of India, were among the key new ideas discussed by bankers and experts at a brainstorming session steered by the finance ministry on Friday to improve state-owned lenders’ efficiency and governance. 

“Experts and bankers advocated for further dilution of the government’s stake and for more powers to be given to the boards of the banks which would lead to the smoothen function of the PSBs,” a source said about parleys that took place on the first