Does the TimesBank merger with HDFC Bank indicate a trend in the Indian banking industry?
I don’t think this particular event indicates a trend. We will view this (the phenomenon of merger) on a case-by-case basis. The RBI will judge in terms of whatever is the best prudential practice: whether it will lead to more competitiveness and give us better and more viable banks. How long will RBI continue to play the dual role of owner-regulator? The point is very clear that we should move towards the direction of divesting the RBI stakes… transferring the RBI ownership to the Government. That will be better from all points of view. The RBI has been talking about giving freedom to banks. But the government continues to meddle in the functioning of public-sector banks. Even the process of appointments of chiefs sometimes lack transparency. Comment In the new financial structure, the central bank should be further removed from where it is. I believe that if the Government owns the banks, it should appoint the management and the board… It can set up an appointments board of emine
