Business

Government Should Bring Down Its Stake In Public Sector Banks: CII

<!–

–>

Government Should Bring Down Its Stake In Public Sector Banks: CII

CII has advised government to create a specialized agency for investigating financial sector frauds.

Government should bring down its stake in the public-sector banks below 50 per cent through the market route over the next 12 months except for three-four large PSU banks like State Bank of India, Bank of Baroda and Union Bank, industry body Confederation of Indian Industries (CII) said in its Pre-Budget Memorandum 2021-22. (Also Read: Industry Body Calls For Creating Multiple Bad Banks To Buy Bad Loans In Budget 2021)

The CII has suggested for revamping the human resources (HR) policies at large PSU banks and recommended that they should enjoy freedom of the new private sector banks.

“The remaining 3-4 large PSBs should enjoy all the freedom of the new private sector banks, with the only difference being that the Government is the promoter with the single largest holding. These banks should have full HR autonomy to recruit, retain, and develop talent,” CII said in Pre-Budget Memorandum.

The CII has also called for transformation of old public sector banks (OPSBs) wherein the government should facilitate the takeover of old public sector banks by private sector banks.

Newsbeep

“The OPSBs should be asked to transform. Alternatively, there should be a plan to facilitate the takeover of OPSBs by new private sector banks or to encourage private equity firms to take majority ownership to change the ambition and management of these banks,” CII said.

The industry body has advised that the government should create a specialized agency for investigating financial sector frauds.

“Create a single specialized agency, manned with relevant expertise to investigate financial sector frauds. Alternatively improve coordination between the existing multiple agencies and strengthen their expertise,” CII said.

Comment here