This refers to the article “Provisioning for credibility” (July 11) by K P Shashidharan. The author has expressed his dismay at the absence of collective wisdom in the pillars of corporate governance represented by various committees in banks. The truth is that these committees have succumbed to the pressures exerted by the dominant leadership. The Reserve Bank of India (RBI) or, for that matter, the government can create any number of pillars of corporate governance but that will not guarantee good governance.
It is common knowledge that most public sector bank managements indulge in window dressing to suit the tenure of their CEOs. But the question is that why has RBI remained a mute spectator? If RBI, as claimed by the author, has stringent norms on corporate governance in banks, then it should accept the responsibility for allowing window dressing on such a large scale.
K V Rao, Bangalore
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