Ex SBI chief is advocating the privatization of Public Sector Banks in India. He said in an interview with CNBC that the privatization of public sector banks the only way to make them more competitive.
He said “Private sector ownership does not necessarily mean a good governance and that we have seen in many recent cases.” He narrated the investment & return formula to convenience the privatization. According to him, the government should act as an investor and give up control. “If you are an investor then have an expectation as an investor; monitor the performance, make the management accountable and give up the control.”
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He further added that
“I am not a protagonist of a public sector bank or government ownership. The issue has always been around whether there is a willingness on the part of the government to improve the governance or willingness to let the control go. So we have to separate the ownership with the governance and control.”
Where as the Ex Deputy Governor of RBI, Sri S S Mundra said in an interview to CNBC-TV18, “Let us not believe that privatization is a panacea for all the ills. We have seen enough instances and I do not think that any of us would be in a position to reach a convincing conclusion that this is the only way.”