The Hindu Business Line : Public sector banks

This is with reference to the editorial "Banding banks" (Business Line, March 13). The Government's decision to dilute the ownership of public sector banks to 33 per cent and allow foreigners to own 74 per cent will need a fresh look. Further, the Government cannot have one yardstick for the State Bank of India and its associated banks and another for the other public sector banks.

An American banker who has been deputed to study a British retail bank for over a year had this lesson to take away with him: "These grand organisations are, I believe, in my earnest American way, genuine national treasures.

How perfect that the British should celebrate them by complaining about them endlessly." This should have a lesson for Indians too. There has been endless criticism of the public sector banks which have withstood the onslaught by several sections — owners, labour, management and the media.

View their performance and services alongside the repeated criticism that are now regularly appearing in the media about the authoritarian way the new private sector banks are treating their customers.

You are suggesting merger of these entities before these consolidated entities enter the market. A logical step no doubt. But after taking all the trouble of making them compact and competitive, there is a possibility that the owners may give them away on a platter to the foreign banks in the name of liberalisation.

S. Subramanyan

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