This refers to Debashis Basu's column "The bigger changes public banks need" (Irrational Choice, November 3). The writer has succinctly explained the defects in the selection process of the top management of public sector banks (PSBs). The United Progressive Alliance and even the earlier governments led by the Congress used PSBs to achieve political goals. In fact, 20 banks were nationalised in 1969 and 1980 with the same objective. The current Bharatiya Janata Party government faces a herculean task to steer clear of the mess created by these banks. The Reserve Bank of India has all the data about the non-performance of PSBs but has adopted a muted approach.
One point left out by the writer is the remuneration of the top executives at PSBs. This is an area that needs radical reforms. Market-linked remuneration with a stiff performance criteria for the top management can alone improve the overall performance of PSBs. So, the performance data should be linked to the date the CEO assumes charge and the date he/she retires.
K V Rao Bangalore
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