Dear Editor,
The only solution to have a robust banking system is to merge small public sector units with a large bank that is efficient, rather than recapitalising it.
With the kind of non-performing assets we have in the banking system (even Reserve Bank of India Governor Raghuram Rajan has clearly asked the banks to clean their books by 2017), there is bound to be some more chaos in the short- to mid-term future and the only way we can revive the economy is by way of mergers. Though mergers will have its own set of challenges, the biggest of them will be human resources. It’ll still be easier to handle than selling the bank.
Bal Govind
Via-e-mail
