The Hindu Business Line : PSB appointments

This is with reference to "PSU Bank appointments: An archaic system" (Business Line, July 3). In the past few years, most PSBs have come out with IPOs, thereby reducing the government's stake. The IPOs have also received enthusiastic response from the public, as they believed that efficiency and performance of these banks would improve, with reduced governmental interference.

It is unfortunate that the hopes of the subscribing public have been belied, with the appointment of CMDs to these banks remaining mired in politics and controversy.

There are instances of PSBs remaining headless for long periods, all because the Finance Minster is too busy, or the country is in election mode, or because, even after Finance Minister's clearance, the auspicious day has not arrived for the influential incumbent to join duty!

Before the said PSB appointments are approved by the Finance Minister, the files concerned have to pass through several layers (read officials) of the Ministry. If the PSBs were to function efficiently, one of the first things the Government must do is to reduce its stake to the barest minimum — say, 33 per cent.

But, as this is impossible in the prevailing political situation, the least that the government could do is to leave the decisions regarding top appointments to the bank boards concerned — subject, of course, to the RBI's approval.

V. Jayaraman

Chennai

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

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