SPARE THE TAXPAYER | The Public Sector Banks

Recapitalization of public Sector banks needs to come with governance reforms

Public sector banks are those banks which have the majority of a stack from the government. The share of those banks is listed on stock exchange. Indian Government has 21 banks like that which is in under the category of Public Sector. But financial results of this public sector banks for April-June quarter shows that they remaining fragile. It Means that they made a loss when their private sector peers turned in profits.


public sector banks

Also Look At Daily Indian Gossips – India Gossip.

Nowadays government as a shareholder has become a burden. Because the successive government is able to pass on loses to taxpayers. This can’t continue any longer government has promised to recapitalize its loss-making banks. The primary cause for the current state of affairs is governments majority stacks in banks. So this private sectors banks have to deal with an additional regularity layer in the form of the finance ministry. It also leads to attendant problems such as banking heads with too short a tenure, low pay scales and fear of multiple investigators decision in hope of unearthing ‘corruption’.

Thus commercial enterprise cannot be run this way.17 years ago in an earlier NDA government, finance minister Yashwant Sinha proposed lowering government’s stake to 33%. which would have removed some constraints public sector bankers work under .so now it is time for current finance minister Arun Jaitley to actualize his predecessor’s plan. And also government should allow banks to rework their recruitment practices and pay scales as they need to attract the best talent in the job market.


India Gossip, Public sector banks, public banks, recapitalization of public sector banks.


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