Banks Need Autonomy
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.