Consolidation, restructuring and risk profiling are the key issues that will be discussed during the two-day brainstorming session of bankers set to begin in Pune on Friday.
The meet, first of its kind to focus on major concerns of public sector banks after the formation of the new Government, has assumed significance as Prime Minister Narendra Modi will be addressing the bankers on Saturday.
According to details obtained by
Each panel has three bank chiefs besides two executive directors which will come up with recommendations. The respective bank chiefs allotted to the different panels have already been intimated about the issues they are expected to discuss in the meetings.
The gist of all these discussions would be presented to the Prime Minister on Saturday.
“The discussion points and agenda clearly show the spirit of the PJ Nayak committee’s recommendations submitted to the Government in 2014 which is keen on bringing out radical changes in the banking sector,’’ a CMD of a bank who is on one of the committees told BusinessLine on Thursday.
The Nayak Committee had recommended many significant reforms including privatisation of public sector banks (PSBs) by reducing the government’s equity to below 50 per cent and merger of PSBs and transfer their ownership to an investment company.
In line with the panel’s suggestion, the Centre on Wednesday separated the posts of the Chairman and Managing Director to improve governance in banks.
The bankers are also gearing up for a major round of changes as systemic health is a cause of concern.
As mentioned by in the RBI report – Trends of Progress of Banking in India – released last week, overall risks to the banking sector remained unchanged during the first half of 2014-15 going by the banking stability indicator.