Consider privatising public sector banks: FICCI to govt. |ForumIAS

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Context:

Industry body FICCI has called for privatisation of public sector banks (PSBs)

Details:

Recently, FICCI President has said that the government should consider privatising public sector banks
He added that the recapitalisation efforts by the government have had little effect on improving their health
The statement follows the government announcement last October of a ₹2.11 lakh crore recapitalisation plan for PSBs, of which ₹88,000 crore is scheduled for the current financial year.
He further said that the recapitalisation of PSBs alone is not a permanent solution and will not be effective unless the inherent issues related to governance, productivity; risk management, talent, customer service, etc. are resolved
Previously, Chief Economic Adviser had also stressed the need to shrink unproductive public sector banks and move forward with increasing private sector participation in the banking sector.