Industrialist have ample money to open new banks .they will not be liberal with priority sector loans or rural branches . they will have recovery agent and recover their money from people . may be people will utilise borrowing of public sector bank to repay the dues to private banks . pvt banks will be a success since these banks may manipulate their asset quality
its togh which is good for corporates, so they fully know what they are getting into...the risks and returns as well...tougher norms will reduce and enable a pro-consumer outlook and can ensure more security for its clients and the people at large
Norms should be framed not only in banking sector but in every area and on every authority of all sectors. Then strict punishments are to be awarded to any default, whoever the may be defaulters. The norms and regulations should not be eye wash. Where the norms, regulations and auditing were effective in the case of Satyam like areas?
It is too tough, then it is good to the banking sector. At this point of economic growth, we cannot afford loss making banks, defaulting banks due to inefficient management, low capital. It is always better to have strong banks, most efficient banks rather owning bank by ever dom dic and harry. See the audacity of SKS micro statement that they will look into bank license in Mary 2013. Do they really deserve a bank licence? Players who are planning to have a quick buck should not be allowed to get bank licence. We should learn from the mistakes of Centurion bank, Times bank, Bank of punjab and should not do the same mistakes again. Banking is not every one`s cup of tea.