This is with reference to "PCA shadow on PNB, Canara and Union Bank" (May 17). Already 11 public sector banks (PSBs) are under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India. Some more are likely to come under this framework including some of the biggest PSBs such as Punjab National Bank, Canara Bank and Union Bank. I feel the government has not carried out substantive reforms in the PSBs’ loan sanction systems, management, board functioning systems etc.
Merely changing people at the helm of affairs and charge-sheeting the ones who have allegedly committed acts of malfeasance alone will not make the problems go away. The core problems need to addressed.
The secretary in the Department of Financial Services holding a meeting of the whole-time directors of the PSBs and stating that the government is exploring the possibility of asking the RBI to relax the PCA norms is missing the whole point.
Substantive reforms in all facets of PSB functioning have to be quickly carried out. Much time has been wasted. Else it will only be a case of blame-game while the ships sink one by one. A case of Nero fiddling.
Arun Pasricha, New Delhi
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The Editor, Business Standard
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New Delhi 110 002
Fax: (011) 23720201 • E-mail: letters@bsmail.in
All letters must have a postal address and telephone number