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This refers to the news item that the Reserve Bank of India has accorded permission for setting up two more private banks by reputed business/industrial houses. The country has enough banks in the public, private, co-operative, foreign and other sectors. The banks' performance depends mainly on the management and work culture. Their constitution and ownership hold little relevance for the banks' health.

There are a number of public sector banks, such as the State Bank of India, Corporation Bank and Bank of Baroda, that are performing well. Unfortunately, there are more private sector banks that are poorly managed. With so many banks at the crossroads of economic liberalisation and globalisation, it is time to take stock of the existing bank structure and consolidate the position instead of allowing more banks to be set up. It is better to ponder over past failures rather than indiscriminately give licences for new banks.

R. S. Raghavan, e-mail

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