This refers to Debashis Basu's column "Public sector banks: Mr Modi's nightmare?" (Irrational Choice, June 15). The political bosses at the Centre have now realised the bitter truth. The mantra of privatisation is visiting the policymakers but the government would not be able to sew the solution during its first term. The best thing it can do right now is to ensure that the financial health of public sector banks (PSBs) does not deteriorate further.
The sanction of big loans should be outsourced to a group of professionals who should be directed to follow the appraisal process practised by leading private sector banks. In fact, the top management in PSBs should not hesitate to approach their private sector peers. The follow-up system should be streamlined and here again, the private sector banks' systems should be adopted.
K V Rao Bengaluru
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