This issue was discussed at the Gyan Sangam addressed by Prime Minister.
In a proposal to FinMin, the Banks Board Bureau suggests asset sales to PSUs within a deadline to recover bad loans.
It will be headed by Secretary, Department of Financial Services.
Govt reconstitutes body, says will not interfere in senior PSB appointments
The Centre is looking to continue maintaining an arms length in financial sector appointments.
These recommendations are based on interactions held by the Banks Board Bureau with eligible candidates from PSBs towards appointment against vacancies in PSBs for the period 2018-19
The Centre should privatise all public sector banks (PSBs), except the State Bank of India (SBI). This is because private banks have emerged as a credible alternative to PSBs with substantial market share. Also, government ownership hinders the ability of the Reserve Bank of India (RBI) to regulate the sector, according to a report by the National Council of Applied Economic Research (NCAER).
The government on Tuesday appointed SBI's senior-most managing director Dinesh Kumar Khara as the chairman of the the country's largest lender. He replaces Rajnish Kumar, who completed his three-year term on Tuesday.
RBI says haste in easing norms for banks harmful to economy.
Khara will replace SBI Chairman Rajnish Kumar, whose three-year term comes to an end on October 7.
After Chanda and Deepak Kochchar, the Kudvas are the second power couple in the financial world to come under the regulatory glare.
While the formation of a holding company will not outright privatise State-owned banks, officials believe it will help the Centre deflect criticism arising out of the latest banking scams.
The only feasible way to have a healthy banking sector could be making it mostly private, along with two or three large, better-run government banks, suggests T N Ninan.
Former CAG Vinod Rai said he will not take a single rupee in remuneration from the government for his work.
The government is considering a proposal to privatise some state-owned banks in phases.
Human memory about policy issues is short. That alone can explain why many are deliriously happy with his latest slogans and ignore seven years of poor 'doing business' climate, taxtortion, extortionate oil prices, and high dependence on babus and the big State that has kept the enterprise system stifled, observes Debashis Basu.
The rally followed the govt's plan to bolster state-owned lenders.
Mergers to create at most six state banks
Indradhanush-II is likely to chart out the process for resolution of non-performing assets.
Relations with the government, the bank's majority owner, are a tricky issue for all SBI chiefs, and, like all his predecessors, Khara will be closely watched for his equations with the finance ministry representative on the SBI board.
Prime Minister Narendra Modi was on Monday quoted as saying that Tuesday's expansion of his ministry will reflect "budget focus and priorities".
Bank reforms positive but implementation a risk, says Fitch.
The strike call is over privatisation, mergers, and also due to write-off of corporate NPAs, criminalisation of willful default
Banks Board Bureau chief Vinod Rai has proposed performance-linked incentives for bank employees, but the staff unions are dead against the idea.
DDinesh Kumar Khara is someone who cares for others's ideas and suggestions.
If he takes the people along with him (which he always does); cares for the customers (80 per cent of SBI's new customers are in the 20-40 age group); and doesn't take his eyes off technology, his job is done, says Tamal Bandyopadhyay.
Members of Parliament, state legislatures, and local governments not eligible to be members of PSB boards
The training programme will contain thought leadership courses, group exercises, simulations, including role plays and situation analysis and personal explorations workshops
Pulbic banks have no reason to cheer Budget announcement.
The cacophony of uninformed voices should not impact decision making process of bank executives.
The government is open to providing more capital than that announced in the Budget.
Some measures announced in Indradhanush -- a 7-point Modi plan to revamp State-owned banks but not completed -- may be taken up again.
Analysts were expecting the government to propose higher capital infusion for banks.
"I think bankers have expressed some concern that they should not be held liable for actions that are taken in the full spirit of what is needed," Raghuram Rajan said.
Does the Union government or the RBI see itself as Krishna beheading Shishupal and what will constitute the 101st or indeed the past many sins for which a Sudarshan Chakra will have to be used? More importantly, what are those sins?
The governance reforms, as an official put it, would bring in measures to track the performance of the executive-rank employees of the banks, intensively.
The cumulative loss of 20 state-run lenders stood at Rs 14,000 crore during Q4
Non-Performing Assets are a wake-up call for public sector banks.
B Sriram, the senior-most managing director at SBI, along with fellow MDs Rajnish Kumar, P K Gupta, and Dinesh Kumar Khara had been interviewed for the post
'The government must find worthwhile private owners for some of the banks, increase the share of private sector banking in the system, and then ask the remaining government banks to face the discipline of the market and compete, or shrink into irrelevance,' says T N Ninan.
Those behind recapitalisation are neither aware nor do they care. After all, they have no skin in this game. And the Lok Sabha elections are round the corner. That's what they care about, points out Debashis Basu.
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