PSBs cannot remain Non Performing any more.

 The editorial ‘Needed, More than piecemeal Reform’ (Et dt 18/2/2015) has very well captured the ills that PSBs encounter these days  and for their revival  more than the capital what is needed is  removal of structural rigidities is well  argued and concluded.  They suffer mostly for not for want of capital but for lack of professionalism in their managing the business in tune with the requirements of the economy and not evaluating themselves as to their effectiveness in driving the economy through adequate infrastructure growth for ensuring fast progress in the Industrial, SME and Agricultural sector is a fact, which cannot be ignored. The business models for deposit mobilization, credit expansion, deployment of funds in infrastructure and securities market need an overhaul for which the board needs to be highly professional with persons of high integrity, skill, experience, commitment and involvement. The economy has abundant resources in terms of money, gold, human capital and all valuable other  commodities and it is for the banks to tap them appropriately and make them productive assets. The banks themselves cannot remain Non performing is what needs to be realized at this crucial juncture of bringing fast changes in the economy through improved Governance, ease of doing business and targeting inclusive and fast growth of the economy.

T.V.Gopalakrishnan   

(This letter appeared in ET dated 20/2/14 under the Chat Room).