With reference to financial services secretary Hasmukh Adhiya's interview in this newspaper on August 17, he said that managing directors and chief executive officers of 16 public sector banks (PSB) would be appointed from within these banks only and not from the private sector.
Merely appointing a private sector professional as the head of a PSB will not usher in a turnaround in the that bank's performance.
In fact, such a move could be counterproductive as the 'outsider' would not have much idea about the constraints faced by the PSB. To bring about a turnaround in PSBs' performance, there has to be a change in the way these banks function. For that to happen, the government needs to distance itself from the day-to-day operations of PSBs and give them autonomy like private sector banks.
Sagar Soni Gandhinagar
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