Consider privatising public sector banks: FICCI to govt.

Consider privatising public sector banks: FICCI to govt.

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.