Difficulties in even some private banks in India suggests that ‘simple’ solutions like privatizing all public sector banks may be no panacea. Comment.

Answer: The Indian banking system is overburdened with non-performing loans with much of the problem lying within the public sector banks, but private sector banks like ICICI and Axis Bank have not been immune to this contagion. The difficulties in even some private banks suggest that straight forward solutions like privatizing all public sector banks may not be a solution to the problem.

Steps to Tide over the Crisis

There is a need to recognise that ownership is just one contributor to poor governance, and the solution lies in evolving pragmatic ways to improve governance across the board.

  • De-risk ....
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