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Predators in Dinner-Jackets
In ‘Weak Banks: A Strategy for Self- Renewal’ (January 29), D N Ghosh gives an excellent analysis of the weaknesses of the three nationalised banks and offers some valuable suggestions for self-renewal sans government support. A precondition of this strategy is that “government must keep out of the process”. So far so good.
In ‘Weak Banks: A Strategy for Self- Renewal’ (January 29), D N Ghosh gives an excellent analysis of the weaknesses of the three nationalised banks and offers some valuable suggestions for self-renewal sans government support. A precondition of this strategy is that “government must keep out of the process”. So far so good.
But do these banks have the inherent resilience and strength to bounce back to profitability on their own, the government playing only an enabling role “as facilitator in removing the road-blocks of the past”. There is some doubt. That there had been no run on these banks was mainly because of depositors’ faith that their money was safe and secure as the government stood behind these banks. Remove that myth and see what happens.
Dear Reader,
