This refers to Debashis Basu's column "Gyan Sangam's PSU 'reform'" (Irrational Choice, January 12). When it comes to public sector banks (PSBs), the Congress regime proved far bolder when it merged the ailing New Bank of India with the Punjab National Bank in 1993, another PSB. The government, as the owner, has to take a call on key matters such as mergers, or even bringing its stake below 51 per cent, and show a will of steel in their implementation, not leaving it for the bank management.
PSBs have always taken refuge behind the government mandate and resolve, even for the smallest unpleasant reforms. The government must seize the opportunity of pending wage revision and force whatever reforms it wants to implement. The banking secretary informing after the Gyan Sangam that bank boards will decide on the merger issues and then come to the government, may be merely stating what transpired there.
There's a risk that the Gyan Sangam could have left among the participants a feeling of laissez-faire about the key banking reforms.
Y P Issar Karnal
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