Letter to BS: Public sector banks need greater functional autonomy

It is a matter of common knowledge that public sector banks (PSB) are faced with an unprecedented crisis in terms of an unsustainably high level of non-performing loans. While it will need the control and regulatory mechanisms further tightened and successive bout of structural reforms to clear the mess in the system, it is important to understand that banks cannot be entirely blamed for the present picture. The high level of NPAs is due to combination of many factors and some of them are beyond the control of banks. The credit committee decisions taken are based on the current market