PSBs and autonomy

The autonomy for PSBs is only a wishful thinking. As long as the Government and RBI's nominees are on Banks' Boards and the the interference of the Ministry of Finance in particular in day to day working of banks directly or indirectly continues, autonomy for PSBs can only be in paper. The appointment of Directors on Banks boards by the Government based on influence and contacts kills the very thought of autonomy in PSBs. Financial independence can come to banks only if they manage the loan and investment portfolio professionally and the Government directors do not dictate terms on the sanction of loans and write off of loans. Further, the SLR requirements to suit the Government borrowings and the capital induction by the government at periodical intervals also affect the autonomy as the Banks have no independence to manage their finances the way they want on commercial lines.PSBs autonomy is always at a distance and it is only chasing a mirage.

 

Dr.T.V.Gopalakrishnan