more-inShaktikanta Das, member, 15th Finance Commission, has said that governance is the biggest challenge in the Indian banking system and suggested formation of holding companies for at least nine to 10 public sector banks (PSBs) and adopting strategic reinvestment for another 10 to 11 PSBs. The holding companies should be professionally managed. Holding company would mean that it would be government-owned and bank will continue to be in the public sector, he said. Mr. Das said the remaining 10 to 11 PSBs should be put on strategic disinvestment route. “But the government should come out from half of the existing PSBs through strategic disinvestment route,” he said.

Source: The Hindu March 29, 2018 18:11 UTC