The Hindu Business Line : PSBs and competition

While some of the steps initiated by the government in offering more autonomy to the public sector banks (PSBs), including that of mergers/amalgamations, are being criticised by employee organisations and the Left, it is worthwhile to note that PSBs have decided to implement certain reforms in the larger interest of the customers.

`BOB's 12-hour banking service' (June 16, Business Line) reiterates this theory. It is good to note that PSBs have come forward to compete with the private sector. A few months ago, a branch of a leading bank in the private sector introduced an ATM in a moving van under the banner, `Banking on wheels'. A branch of the premier PSB then came forward with a still more novel idea of ATMs in a boat, under the banner, `Banking on waves'.

It evident that even without more autonomy or mergers, the PSBs have the strength and infrastructure to stand up to competition.

Another development, being spoken of in the Finance Ministry, that of the banking sector being excluded from the purview of the Central Vigilance Commision, requires consideration.

The Finance Ministry may want to review the issue while considering ways and means to convert PSBs into `truly national banks'.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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