The induction of additional capital to PSBs using common mans' money is nothing but incentivising accumulation of bad debts and recognising the bad management for their non professionalism. Using tax payers' money to finance badly run public sector banks and driving good money after bad money by inducting additional capital reflects only the laxity in Governance standards expected of the new Government and following the beaten track so far travelled by the previous Governments. This can never improve the functioning of PSBs and discipline envisaged from borrowers who believe in looting the banks at the cost of all stake holders of banks and the economy. Such an approach definitely cannot stand business ethics and management prudence.
Dr T V Gopalakrishnan
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