Apex industry body, FICCI has said that India needs sustainable high growth for its socio-economic development which will not be possible in the absence of support from a robust healthy financial sector.
FICCI firmly believes that the recapitalisation of public sector banks alone is not a permanent solution and will not be effective unless the inherent issues related to governance, productivity, risk management, talent, customer service, etc. are resolved.
"Given the continuous pressure on the government finances on account of the weak performance of the banks, the government should consider privatisation of Public Sector Banks. This would reduce drain on the exchequer and the money saved could be used for developmental schemes and programs of the government," said Rashesh Shah, President, FICCI.
"A dynamic banking sector is the need of the hour and we should examine if there is at all a case for public sector domination in the banking sector."