Private banks need to win govt's trust before vying for business

Post 2020's YES Bank crisis, chunk of government business moved from private to public banks for ease of operation

The Nifty Bank index did not register much gains on Thursday as anticipated by market experts on Wednesday, when the central government opened up its business to private banks. The reason being with top names such as HDFC Bank, ICICI Bank and Axis Bank already privy to government business, whether the recent decision can be significantly positive for the sector needs to be seen.

Touted as a move to enhance customer convenience, spur competition and set higher efficiency in the standards of customer service, the lifting of embargo on grant of government business (including government agencies) to private sector is