Capital infusion isn't a solution, but is unavoidable: Usha Thorat

Govt should quickly follow up with professional management, autonomy and more accountability in these lenders, says the former deputy governor of RBI

With the government announcing a mega bank recapitalisation package of Rs 2.11 lakh crore on Tuesday, many public sector banks (PSBs) starved of cash would breathe more easily. Usha Thorat, former deputy governor, Reserve Bank of India, says this capital infusion will help banks withstand the write-offs needed for resolution of non-performing assets (NPAs). Thorat tells Joydeep Ghosh the government should quickly follow up with professional management, autonomy and more accountability in these lenders. Edited excerpts:

What is your initial reaction to the recapitalisation package for PSBs? 

This is a big step, as it was needed for public sector banks