ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Narrow Banking Fudging the Issue

If weak public sector banks have to be turned around and put on a sustainable path of growth and profitability, certain ingrained cultural characteristics of these banks have to be confronted, This can be done only with the support and understanding of the two critical stakeholders in these banks, the government and the employees who owe their allegiance to politicised unions. It is these stakeholders who hold the future of the public sector banks in their hands. The experience of some international banks who have resorted to narrow banking as a consolidation measure has little relevance to the highly politicised ambience of our public sector banks.

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