Governance more important than ownership of banks, says SBI chairman

State Financial institution of India (SBI) chairman Rajnish Kumar on Monday stated it doesn’t matter who owns a financial institution however what issues is how it’s ruled.

His assertion comes amid the Centre’s plan to convey down authorities stake in some public sector banks (PSBs).

In his speech on the Seventh G Ramachandran Memorial Lecture organised by South India Chamber of Commerce & Business, he stated the banking system has developed loads.

“There are solely two selections. Small non-public sector firms should discover a area of interest for themselves. In any other case, they can’t compete towards the big public or non-public sector,” he stated.

The transfer to privatise some public sector banks will not hurt to the banking sector or the economic system, he felt.

“We’ve a state of affairs the place SBI, and not less than six massive banks, publish merger, can handle the social banking agenda of the federal government whereas the remainder might be within the non-public sector,” stated Kumar.

The final notion is that if the non-public sector goes down, it’s not tax payers’ cash. “I don’t imagine in that. Any enterprise going there’s a loss to the taxpayers, be it non-public or public. Closure of any enterprise is towards the curiosity of the frequent man and the tax payers of the nation,” he added.

Talking on digitisation, he stated, cell banking might turn into probably the most most well-liked banking channel, much more than web banking, within the days to return.

“Out of 100 transactions at SBI, solely 9 are being made in branches. Whereas transactions at ATMs on the time of demonetisation have been round 55 per cent, now they’re right down to round 30 per cent. Digital and cell banking have seen an increase from 25-30 per cent to 55 per cent now. Going forward, web banking and cell banking are more likely to flourish,” he added.

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