The Confederation of Indian Industry (CII) sought higher private sector shareholding in public sector banks (PSBs) to infuse professionalism into the banks’ management.
“The current episode of financial fraud shows gaps in supervision and monitoring systems at the bank level which have the potential to become disruptive for the industry and the financial sector,” said Chandrajit Banerjee, director general, CII.
CII called for “infusing professionalism in bank’s management, and dilution of government stake in PSBs to bring them down to 52% in the first phase and then, to 33%”. Mr.Banerjee added that the banks should consider using smart technologies such as blockchain, big data analytics and artificial intelligence.
“CII stresses that the government should consider lowering its stake in public sector banks and increasing the equity spread through wider private participation,” said Mr. Banerjee. “This should be accompanied by consolidation of PSBs to result in fewer but stronger institutions of global scale.”
