Letter to BS: Govt must take corrective actions to save public sector banks

It is imperative for the government to keep itself away from decisions of bank functionaries

This refers to "The way forward for public sector banks" (October 2). Repeated capital infusion by the government isn't really serving the intended purpose because of the requirement for enhanced provisions on loan losses. Being an owner, the government should ensure strict supervision of the functioning of public sector banks (PSBs) to keep them efficient and credible. The big-ticket loan-related frauds, the divergence in recognising stressed assets, the slow progress of resolution and recovery of bad loans and the likelihood of large loans to stressed sectors turning non-performing are still major impediments in the way of improving the efficiency of