Government prepares blue print for autonomy of banks - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Mar 7, 2000 - Government prepares blue print for autonomy of banks

Government prepares blue print for autonomy of banks

Mar 7, 2000

The government has started the valuation of the assets of PSU banks as these banks would soon start tapping the capital markets to reduce the government's holding. In addition the government is also preparing a blue print for providing autonomy to these banks. The following measures would be adopted in the blue print:

  1. The role of chairman and managing director (CMD) would be bifurcated into part time chairman and full time managing director.
  2. The board would be responsible for making only policy decisions.
  3. The number of non-executive directors to be increased to at least 25% of the board strength.
  4. To strengthen the management committee of PSU Banks
  5. Day to day operations to be delegated to chief general manager and the general managers.
  6. Accountability of bank management to be increased. Corporate governance practices would be incorporated and directors would be made more accountable.

The move to provide greater flexibility and autonomy to banks in formulating their corporate strategies will pay off in the long run as they will be in a position to take quicker decisions. As the blueprint proposes that the day to day running would be left to chief general managers and general managers the operations of the banks would be free from bureaucratic delays.

However as the PSU status of these banks is likely to continue they would be burdened by problems related to PSUs and hence will not compete on a level playing field with the private sector banks.

Though the government is keen to undertake the above measures whether they have the strength to do so remains to be seen. This is because the employees of the PSU banks would be averse to privatisation of these banks.

Equitymaster requests your view! Post a comment on "Government prepares blue print for autonomy of banks". Click here!

  

More Views on News

7 Stocks that Mutual Funds Can't get Enough of (Views On News)

Dec 1, 2021

Come hell or high water, these are the top Indian stocks which mutual funds never leave.

5 Indian Banks with the Lowest NPAs. Here's How they Did It... (Views On News)

Sep 27, 2021

These banks have managed to maintain their asset quality even in the middle of a pandemic.

PNB Reports an Over Three-Fold Jump in Net Profit as Provisions Fall (Views On News)

Aug 3, 2021

The reduction in provisions for bad loans and asset quality stability may have aided the lender's earnings.

Here's Why IndusInd Bank's Net Profit Doubled in the June Quarter (Views On News)

Jul 28, 2021

All you need to know about the latest quarterly results of IndusInd Bank.

Axis Bank's Stock Falls as Results Disappoint on Asset Quality (Views On News)

Jul 27, 2021

Axis Bank's net profit more than doubles on a spike in other income and lower provisioning.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE BANKEX


Dec 3, 2021 (Close)

S&P BSE BANKEX 5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS