On many forums there are many solutions for the psu banks. Most of the solutions are – privatize them, merge them, etc. There can be other solutions too…
- Make a list of all the psu banks in terms of an over all score. Tell the bottom 5 that they cannot accept new deposits, cannot open new accounts, cannot sanction new loans,…
- Tell the bottom 10 that they cannot recruit at all
- Ask all the banks to announce a VRS and let people go
- Close branches / merge branches across all banks
- Allow migration of accounts, and people from one bank to another
- Allow only the top 5 to lend more than Rs. 500 crores to one client
- Force borrowers borrowing more than Rs. 10,000 crores to go to the capital market for their debt requirements
- Rationalize stamp duty across instruments and geographies
- Merge all the life insurance companies belonging to all the banks into LIC
- Merge all the general insurance companies into GIC
- Merge all the mutual funds into UTI…
- Over 5 years the bottom 5 will close down. Repeat ranking the 22 banks..
- Over 15 years you will be left with 5 banks 🙂
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