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Some PSU banks can be privatised, though time is not right now: SBI Chairman
New Delhi, April 6 (IANS) The time is not right for privatisation of public sector banks (PSBs), though some of them could be divested by the government after making them financially attractive, according to a top banker.
“The time, though, is not right at present, because these banks would need time to be strengthened and one has to put behind the turmoil in the banking sector,” Rajnish Kumar, Chairman of State Bank of India (SBI), told IANS on the sidelines of a meeting here.
He said that because of the perception that the banking system was going through a turmoil following the fraud discovered in the Punjab National Bank, the markets may not react favourably to such a move. “In any case, before privatisation, banks need to be made stronger so that they fetch the right price,” he said.
According to him, it would take at least two years for the banks to be strengthened for divestment.
He said he was not per se opposed to privatisation of a “few banks”, though the social initiatives undertaken in the banking system would suffer if many of the government-owned banks were privatised. He said the SBI alone could not manage to meet all the goals set by the government on social inclusiveness.
The SBI chairman’s attention was drawn to an article by economist Arvind Panagariya which had argued that all the PSBs, except the SBI, could be privatised to make the banking system more dynamic. Panagariya said the social sector initiatives of the government can be ensured by private sector banks through regulation.
Without taking up the argument, Kumar said it was often seen that private sector banks were not too keen to open accounts for people with very low incomes. “We can go and find out which private sector bank will open an account for a person who has only Rs 200 in his pocket,” he added.
Panagariya, professor of economics at Columbia University, wrote on Wednesday in the Times of India that recent steps undertaken by the government and the RBI on recapitalisation, aligning the stressed asset resolution process to the Insolvency and Bankruptcy Code of 2016 and setting up of an enforcement department in the RBI were major steps to create a healthy banking system.
“But these are not enough,” he said, adding that, in the long run, full modernisation of the banking sector requires further structural reforms.
“One such reform that must be high up on the agenda of the next government is privatisation of all pulic sector banks other than the State Bank of India,” he wrote.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.