Banks Need Au­ton­omy

The Economic Times - - The Edit Page -

The CBI’s ar­rest of for­mer se­nior bank of­fi­cials last month ques­tion­ing their de­ci­sion to lend to now-de­funct King­fisher Air­lines has led to a need­less fear psy­chosis among bankers. A fair and ob­jec­tive in­ves­ti­ga­tion is in or­der, but any witch-hunt will de­mor­alise hon­est of­fi­cers and pre­vent them from tak­ing de­ci­sions. This will hurt the econ­omy. At this point of time, state-owned banks cer­tainly need more func­tional and op­er­a­tional au­ton­omy to take ob­jec­tive lend­ing de­ci­sions.

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