An RBI-constituted committee led by PJ Nayak in May 2014 had submitted its recommendations to improve the governance structure of state-owned banks and also to help private sector banks attract more capital.
Given poor asset quality and low productivity, either privatize PSU banks or transform governance structure to make them efficient
Reduce government stake in PSU banks to less than 50%
Remove dual structure of both Finance Ministry and RBI regulating PSU banks. Give all regulatory authority to RBI
Improve quality of PSU bank board discussions; focus on key areas like business strategy, financial reports, risk, and compliance
