Speaking during the Make In India event, Finance Minister Arun Jaitley said that the government will soon initiate a series of reforms to improve governance in public sector banks (PSBs). The sector has reported losses in excess of Rs 10,000 crore in an effort to get rid of bad loans.
Announcing plans for PSBs, Jaitley said India has not reached a stage where the government can pull out of banking. While privatization was not on the agenda, the government will address issues such as maintaining an arm’s length relationship with banks and professionalizing bank boards. “Banks have to work on banking considerations.
This is an area where we have probably erred in the past,” said Jaitley at the ‘Make in India’ week on Sunday.