Apropos the report “Branches of loss-making PSU banks may be closed” (April 10), the government is right in scaling down the operations of loss-making branches of public sector banks (PSBs).
It is common knowledge that loss-making branches are non-viable propositions. Banks are, after all, commercial entities and have to be treated as such. The number of loss-making units put together could be huge and shutting or relocating these by re-deploying the staff at other profitable centres is the only option. It’s true that PSBs have a strategic role in enabling financial inclusion. Though they reach out to a large section of people in rural areas, commercial viability is critical for sustenance.
Srinivasan Umashankar Nagpur
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