FM Arun Jaitley for independence to PSBs from political decision-making

MUMBAI: Pitching for public sector banks being given independence from political decision-making, Finance Minister Arun Jaitley today said efforts are on to professionalise all personnel-related issues at these banks.

Speaking here at a banking industry event, Jaitley also said that the brick and mortar branches may probably lose relevance with alternative channels like online coming up.

He said public sector banks have to be given independence from political decision-making and their decisions should be based only on banking merits.

"Efforts are on to give shape to the Banking Bureau and to professionalise all personnel issues... We are willing to look at changes....

"We have appointed a panel headed by Justice A P Shah to find options of hiring best quality talent," he said.

Speaking on various issues, Jaitley said the number of stalled projects has considerably declined and he was sure the the measure on anti-dumping duty on steel will provide some relief to both the domestic industry and banks battling NPAs.

"The bankruptcy code draft will be put out by early next month and would be taken to Parliament from there. Resolution of disputes with relation of contracts law will be passed by the end of the fiscal," he said.

The Finance Minister further said there is a need to computerise Dispute Resolution Tribunal and minimise the oral hearings to two per matter.

He said that the savings through Direct Benefit Transfer has given the government fiscal space to address other issues in the economy.

"We can't afford to miss this opportunity presented by the global turmoil," Jaitley said.