‘PSC Does Not Think Privatisation Is An Answer To Banking Crisis'

Parliamentary Standing Committee of Finance is very keen to solve the stressed assets of the banking industry in India. It has talked with various heads of organisations like RBI, SBI and other Public Sector Banks in phases. It is observing the internal and external factors behind the financial crisis and the management problem of the banking industry. In an exclusive interview Prof. Saugata Roy, MP, and a member of Standing Committee of Finance talked to BE’s Kishore Kumar Biswas on various issues related to banking industry.

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Q. The banking industry in India has been undergoing huge stress. The Parliamentary Standing Committee met recently with 11 heads of banks to discuss this. What is your opinion about the banking sector, particularly, the PSBs?

A. The Parliamentary Standing Committee of finance talked to the Governor of the RBI and its deputy governors, Chairman of the SBI, and heads of public sector banks. All have put forward their opinions about the industry. The RBI thinks that they should have given more supervisory power to look after banking. RBI officials also told that it has no power to appoint or discharge any heads of PSBs. It is also not possible for them to supervise all the units of the industry.