The way forward for public sector banks

Regulation and supervision of all banks should be made ownership neutral

A release from the Press Information Bureau on June 24, titled “Public Sector Banks”, had this to say on strengthening PSBs: “Over the last four financial years, the Government of India has taken comprehensive steps under its 4R strategy of recognising NPAs transparently, resolving and recovering value from stressed accounts through clean and effective laws and processes, re-capitalising banks, and reforming banks through the PSB reform agenda”. 

There seems to be some confusion between the legitimate functions of the sovereign; the owner; the regulator and the board or management. Recognising NPAs is a matter for the management and the regulator,