Governance more important than ownership of banks, says SBI chairman

A government move to reduce its stake in some public sector banks will not do any harm, he says.

State Bank of India (SBI) chairman Rajnish Kumar on Monday said it doesn’t matter who owns a bank but what matters is how it is governed.

His statement comes amid the Centre’s plan to bring down government stake in some public sector banks (PSBs).

In his speech at the Seventh G Ramachandran Memorial Lecture organised by South India Chamber of Commerce & Industry, he said the banking system has developed a lot.

“There are only two choices. Small private sector companies must find a niche for themselves. Otherwise, they cannot compete against the large public or private sector,” he said.

The move to privatise