Budget 2021: Rajnish Kumar and SS Mundra weigh in on privatisation of PSU banks
Is privatisation of public sector banks the only way to make them more competitive? Not necessarily so, according to SS Mundra, Former Deputy Governor of Reserve Bank of India (RBI) and Rajnish Kumar, former SBI chief.
Is privatisation of public sector banks the only way to make them more competitive? Not necessarily so, according to SS Mundra, Former Deputy Governor of Reserve Bank of India (RBI) and Rajnish Kumar, former SBI chief.
Explaining this in detail, Mundra said in an interview to CNBC-TV18, “Let us not believe that privatisation 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.”
Meanwhile, Rajnish Kumar, Former Chairman of State Bank of India (SBI) said, “Private sector ownership does not necessarily mean a good governance and that we have seen in many recent cases.”
“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,” said Kumar.
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,” said Kumar.
For entire discussion, watch the video
(Edited by : Abhishek Jha)
First Published: Jan 14, 2021 7:33 PM IST
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