This refers to the report "Who is responsible for the crisis at UBI? (March 5). The short answer is "none", given the management structure in state-owned banks. The government as a major stakeholder should accept the responsibility. This crisis is not limited to the United Bank of India (UBI). All the public sector banks (PSBs) suffer from the same set of problems. It is quite easy for the secretary (financial services) in the ministry of finance to fix the responsibility to the nominee director of the Reserve Bank of India (RBI). The RBI has already sensed the danger posed by its representation in the boards of PSBs, that is why it's keen on withdrawing its representative. The reason cited for public consumption is conflict of interest. What about the duality of control experienced by PSBs? The finance ministry has been micro-managing PSBs and there are a number of instances to prove this point. The top management in PSBs is aware of the power centres. Between the RBI and the ministry of finance, the top management complies with the latter's directives. Why doesn't RBI have a final say in top management appointments? It is definitely a systemic problem.
K V Rao Bangalore
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