This refers to the report "The remaking of the banking sector"(Banking in 2020, April 15). On several occasions in the past also, there has been serious deliberations on banking sector reforms in India. This season, the difference is that the leadership at the Reserve Bank of India (RBI), together with a change in the approach to policy stance in Delhi, has taken the theoretical analyses to the drawing board. Well begun is half done. The other half will be dependent on the continuity of the leadership at the RBI and policy support from the political leadership.
In today's environment, competitors cannot remain healthy without a level-playing field; not only in terms of the uniformity in policy support, but also in terms of business expectations. A change in the mindsets of both public sector and private sector bank managements and their workforce can be brought about only by an overhaul of human resources practices - right from appointments to boards down the lane and revision of remuneration packages.
Making the private sector surrender its private interests in favour of public interest and percolate into 'priority sector' lending - which consists small borrowers in certain sectors - will be an uphill task.
M G Warrier Thiruvananthapuram
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