'Big-bang approach' to privatise state-run banks will do more harm than good, RBI says

The Reserve Bank of India said that if the sole motive is not only profit maximisation, then state-run banks have scored over the private counterparts in promoting financial inclusion and they help the countercyclical monetary policy action to gain traction. The state-run lenders have weathered the Covid-19 pandemic shock "remarkably well" and recent mergers of PSBs have resulted in consolidation of the sector.

'Big-bang approach' to privatise state-run banks will do more harm than good, RBI says
The Reserve Bank of India said that if the sole motive is not only profit maximisation, then state-run banks have scored over the private counterparts in promoting financial inclusion and they help the countercyclical monetary policy action to gain traction. The state-run lenders have weathered the Covid-19 pandemic shock "remarkably well" and recent mergers of PSBs have resulted in consolidation of the sector.