Call for paring of govt stake in banks, greater board autonomy

Granting greater autonomy to the boards of public-sector banks (PSBS), diluting the government's stake in them, and leaving their regulations to the Reserve Bank of India, were among the key new ideas discussed by bankers and experts at a brainstorming the session steered by finance ministry on Friday to improve state-owned lenders' efficiency and governance.

- HARSH KUMAR

"Experts bankers and advocated for further dilution of the government's stake and for more powers to be given to the boards of the banks which would lead to the smoothen function of the PSBS," a source said about parleys that took place on the first day of a two-day PSB Manthan summit being held in the capital.

This is the first such summit being hosted by the Department of Financial Services (DFS) in the Ministry of Finance, since April 2022.