On the eve of India’s 69th Independence Day, India’s Finance Minister Arun Jaitley unveiled a slew of measures to revamp the Public Sector Banks that have been bleeding for a while now. In what could be seen as one of the most aggressive banking reforms by the finance minister till date, the move is expected to receive a positive feedback from the banking sector and revitalize capital starved banks. Mr Jaitley proposed seven new measures to revamp the Public Sector Banks. This revamp will be the most comprehensive since the nationalization of banks in 1969, said Minister of State for Finance Jayant Sinha. These seven steps included:
- The first measure is appointments. Two bankers from the private sector are said to have been appointed as heads of PSU Banks in a much hyped move.
- Government to set up Bank Board Bureau and each bank would be monitored for key performance indicators
- The government will inject a capital of a total of Rs. 25,00 crore into debt laden state banks and over the enxt four years would infuse a capital of Rs. 70,000 crore.
- De-stressing of bad loans at state run banks that have doubled in the past four years
- More flexibility will be given to banks to hire manpower
- Considering Employee Stock Options (ESOPs) for PSU bank managements looking to set up holding companies
- No decision to merge the Bharatiya Mahila Bank with any other public sector bank.
Author Profile
- India Writes Network (www.indiawrites.org) is an emerging think tank and a media-publishing company focused on international affairs & the India Story. Centre for Global India Insights is the research arm of India Writes Network. To subscribe to India and the World, write to editor@indiawrites.org. A venture of TGII Media Private Limited, a leading media, publishing and consultancy company, IWN has carved a niche for balanced and exhaustive reporting and analysis of international affairs. Eminent personalities, politicians, diplomats, authors, strategy gurus and news-makers have contributed to India Writes Network, as also “India and the World,” a magazine focused on global affairs.
Latest entries
- India and the WorldJanuary 21, 2025Make in India complements Made in Italy: Ambassador
- DiplomacyJanuary 19, 2025Given Trump’s primary focus on China, India will remain a critical partner: Expert
- India and the WorldJanuary 17, 2025Trump 2.0: India-US ties set for upswing despite tariff, H1B irritants
- India and the WorldJanuary 15, 2025Who got the Trump Card? Find out from eminent diplomats, experts (Conference on India-US relations)