To fix the rot in public sector banks, start with the boards
Public sector banks need to put their houses in order, systems and processes need to be put in place to prevent events like the PNB fraud
The Rs12,700 crore fraud at Punjab National Bank (PNB) has reopened the debate on privatization of public sector banks. That debate will take years to resolve as multiple stakeholders are involved. The interests of bank employees and taxpayers, the political messaging of privatization, and the government’s own interests as the owner will have to be factored in.