Date:21/11/2006 URL: http://www.thehindubusinessline.com/2006/11/21/stories/2006112100370800.htm

Back Freeing PSBs

This is with reference to "Free the public sector banks" (Business Line, November 15). Public sector banking is one of the few sectors where there continues to be growth. One reason for this is the role played by the government. Reduction of government holding to facilitate more investor participation may look bright, it may even lead to more profit. But at what cost?

When the income-earning capabilities of the public is not even, their credit requirements can be satisfied best only by public sector banks (PSBs). Diluting government holding will curtail the progressive path towards economic development.

Liberalisation, privatisation and globalisation do not necessarily bring meaningful distribution of wealth.

Freeing the PSBs from the hold of the government will only make life more difficult for the common man.

V. Kumaresan

Chennai

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