The need to run the PSBs on professional lines is long overdue as the Government cannot any more afford to carry on the burden of running such rotten institutions with tax payers’ money and with other attendant adverse implications on its finances and the economy. The way these banks are run allowing borrowers to loot perennially the depositors' and tax payers money with the solid backing of the Government cannot go on for ever and time has come to have a relook and revamp the banks to make them really the powerful engines of growth of the economy. The model suggested in the report on par with Temasek in Singapore or the UK Governments UK Financial Investments Ltd can be easily replicated and what the economy wants is that banks should play their role of mobilisation of deposits and the deployment of funds for equitable growth of the economy effectively under proper regulation and supervision by a professional body without any interference from the Government what so ever and accountable to the parliament. The Government and the economy should be the beneficiaries out of such banks and not the other way round. Banks are not meant for unprofessional Board Members and bad borrowers. No doubt, the unions will have to be taken into confidence and their interest cannot be jettisoned. The need to have professional Boards,effective constructive regulation and supervision is paramount and hope the new Government would take this report seriously and implement the recommendations in letter and spirit. More than any one,the Government would be the major beneficiary is also the moot point.
Dr T.V.Gopalakrishnan
( This comment appeared in Money Life)
(This comment appeared in Money Life )
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