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

Articles By Sidharth Sinha

Public and Private Sector Banks: Convergence in Performance

This article examines the performance of public sector banks and the new private sector banks over the period 2005-06 to 2010-11. What emerges is that while the relative performance of public sector banks had improved signifi cantly by 2005-06, the new private sector banks had moved ahead by 2010-11. It appears that early gains by public sector banks may have been the result of initial slack in the system and new gains will require radical changes in human resource management and corporate governance practices. Such reforms are urgent in the light of the proposal to issue new banking licences.

Corporate Governance of State-Owned Enterprises: The Case of BSNL

A missing element in the reform process in India is the restructuring of the incumbent state-controlled monopoly operator prior to or simultaneously with the opening up of the sector to competition. This places the state-owned operator at a serious disadvantage relative to competitors. This has been the case with Air India/ Indian Airlines with adverse consequences. This paper argues that Bharat Sanchar Nigam Limited/Mahanagar Telephone Nigam Limited may be headed in the same direction. The restructuring of the state-owned enterprises must begin at the top with a complete reorientation of the corporate governance mechanism which establishes the relationship between the government and the enterprise. With the growth of private operators in these sectors the state-owned enterprises are no longer of strategic importance to the government for sector development or providing "universal service". To the extent privatisation is not feasible or desirable at least in the short run, the corporate governance mechanism should be designed around the objective of growth and efficiency as in the case of private enterprises.