Letter to BS: Govt should consider a test case for bank privatisation

This refers to the editorial “Proof of concept” (March 21). The state-owned banks made by the successive governments have become a problem to the policy makers. To come out of that, privatisation of public sector banks is not the appropriate remedy. It is illogical to assume that private sector banks are optimally efficient and are conducting business without irregularities, frauds and non-performing assets (NPAs). All financial intermediaries are prone to irregularities and frauds. Since nationalisation, the state-owned banks have been playing key roles in promoting economic growth and social development. Yet, the role of these banks are undermined and establish