Should State Owned Indian Banks Be Privatised?

While the entire nation was busy talking about the #JNUrow in the ongoing debate on tolerance, a very important development with major consequences to everyone in the country has seemingly gone unnoticed.
US based bond rating company Moody’s Investor Service cautioned the Indian government that if it did not boost the capital levels of PSUs by revising its capital infusion plan for the public sector banks in the upcoming budget, the banks will see negative ratings.
Rating 11 state owned banks in India Moody has estimated an external capital requirement at the tune of Rs 1.45 lakh crore for the four financial years, ending March 31, 2019.
Following the directive the Indian government has announced a series of major banking reforms, including lowering its stake in state-owned banks to a staggering 51 per cent.
Under these banking reforms PSB mergers are a top priority, inspite of nationwide protests from the bank employees union of each of these banks. For these reforms the proponent...