This refers to Subir Roy's column "Games of Selection" (Value for Money, November 5). As long as politicians have the final say and ultimate power in the process of selecting public sector bank chairmen and managing directors, the selections will be susceptible to political expediency, compromising the merit and suitability of candidature. Political risk management considerations will continue to take precedence, not withstanding any possible fallouts of adverse selection. The political influence and nexus with bureaucrats as also the experts involved in shortlisting of candidates is also not avoidable altogether. The process can be made more objective and transparent but the element of subjectivity involved therein cannot be eliminated.
However perfect a system may be in the given incentive structure, the political bosses are unlikely to act relegating political interest. Therefore, unless the banking system is depoliticised, the game will go on and such issues will continue to surface time and again. The government should consider leaving the banking business to be owned and run by the private sector and to be supervised by the Reserve Bank of India. Let the government do more governance instead.
Biplab Chakraborty Kolkata
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