Letter to BS: Eleven of 21 PSBs are under Prompt Corrective Action of RBI

Selling the government stake won't get many buyers

This is with reference to the editorial “Beware of lending freeze” (May 15). Eleven of 21 public sector banks (PSBs) are under the Prompt Corrective Action (PCA) of the Reserve Bank of India (RBI). Another four or five are likely to fall under the PCA in view of their rising NPAs and not being able to meet the other concerned financial parameters.

It is time the government and the RBI sit together and decide which of these banks under PCA should stick to some kind of narrow banking that is, stick to only limited banking services like collecting deposits, providing remittance