The comments in the editorial “One bad apple?” (August 8) are prejudiced against public sector banks and biased in favour of privatisation. The manner in which you have argued for the implementation of the PJ Nayak Committee’s recommendations makes this clear. The Nayak Committee has recommended repeal of the Bank Nationalisation Act and SBI Act, which is preposterous given the unparalleled contribution of PSBs to the economic development of the country. The banking system was insulated from the recent global financial tsunami only because our banks were predominantly under the public sector. Further, given the present economic scenario of stagflation, PSBs have a great role to play in not only achieving total financial inclusion but catering to the needs of all segments of the economy. You have linked the SK Jain bribery episode to the inadequate pay packets of CMDs. While this needs to be substantially increased, emoluments alone do not guarantee integrity. What PSBs need is better regulation and monitoring by the Government and the RBI and not de-regulation and private control. The Syndicate Bank-SK Jain bribery episode is another reminder of the need to plug the loopholes in the banking system to weed out corruption. In this context, t the Nayak Committee recommendations of distancing the Government from PSBs must not be given importance.
- CH Venkatachalam, Gen Sec, All-India Bank Employees’ Association
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