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

P N JoshiSubscribe to P N Joshi

Needed - A National Banking Policy

The UPA government, which proclaims to be the champion of the poor with a focus on rural areas, should pause and ponder before pushing the bill for 74 per cent foreign equity in private sector banks, as this will certainly lead to a flocking of banking services to the urban and metropolitan centres. Evolving a National Banking Policy should get precedence over liberal permission to FDI in banking.

Leadership in Banking

Public sector banks may have succeeded in shedding the excess flab of their workforce, but the malaise lies deeper in the upper echelons of administration. More often than not, chairmen are ill-equipped to meet radical demands of a techno-rich age, and move jobs too quickly to bring about long-lasting change.

Banking Sector Reforms

The flip-side of banking sector reforms has been the overemphasis on profits and virtual neglect of the distributive role of the banks. Now, only strong and high net worth companies within the organised sector are capable of raising funds at a considerable lower rate of interest, while the credit disbursal to small borrowers has sharply declined.
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