Letters to the editor dated May 7, 2021
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Taking banking reforms forward
With reference to the article ‘Time for 5th generation banking reforms’ (May 7), despite the many phases of reforms so far, banks especially in the public sector have to a long way to go to become globally competitive. Merging public sector banks, without cleaning their books is hardly helping them scale up. Radical and rapid reforms are essential to resolve the bad assets menace and the government must establish a bad bank with the participation of the private sector.
Banks have to drastically improve their efficiency to cope with the changing scenarios. The task of taking along the society for financial inclusion, alleviation of poverty and generation of employment are crucial for the development of an underdeveloped economy, and the new generation banks must be equipped to discharge their responsibilities.