Banks Privatisation not good for the economy: Y.V. Reddy

Expressing concern over the alarming trend of the banking sector being dominated by private players, the former Governor of Reserve Bank of India Y.V Reddy said here on Friday that privatisation of the banking sector was not healthy for a developing economy.

Delivering a talk on “Developmental banking,” Mr. Reddy said it was unfortunate that there was no national bank which was 100% owned by the government. Even in private banks, the nationalised banks have share more than 50%.

Stating that growth of economy was inextricably linked to the credit linkage by banks, Mr. Reddy said that India could take a cue out of Japan and Germany where governments draw capital from banks and use it for taking up infrastructural projects.