More the merrier..?

More the merrier ?

Please read my posting dated 1st Sept 2011 titled :”Are More Banks Needed ?” regarding my letter in Business Standard dated 1st September 2011.I had sent the same letter to FE also.Today on 12th Sept 2011,FE has also published my letter with the captioned title.Now you can see the differences in the editorial policies of two financial dailies-BS and FE.Same matter was sent to both but each of them published a different abridged edited version of its own.Here is my letter as published in FE today :

Letters to the editor

The Financial Express
Monday, Sep 12, 2011    
More the merrier? 
 
If RBI grants banking licences to industrial houses, in near future, we may have several new banks with, say, names such as Tata Bank, Birla Bank, Ranbaxy Bank, Bajaj Bank, Religare Bank, etc. Currently there are as many as 23 public sector banks in the country (excluding 5 subsidiary banks of SBI), 18 private sector banks, a huge list of co-operative banks (both scheduled and non-scheduled) and several foreign banks with business and branches in India. Does the adage “More the merrier” augur well for this move? Certainly not. The intentions of RBI may be good (financial inclusion, competition, etc) but does RBI have the machinery and the manpower to monitor the performance of various types of banks in the country? Definitely not. This is clear from the large number of scams, frauds, failures exposed in the banking sector. Banking is definitely an industry, but all industry is certainly not banking. With industrial houses having core competencies in several areas, it is far fetched to assume that they will also do well in banking which involves varied degrees of risks.
JS Broca
New Delhi
To read the letter on FE’s website,go to :
To read my earlier letter in BS of 1st Sept 2011,go to :
Viva the difference !!
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2 Responses
  1. J S BROCA says:

    Dear Readers,
    There was a similar topic discussed in BUSINESS WORLD magazine.It was titled :”RBI’s Baby Steps”.I had posted my comments under the article on 5th Sept 2011.After waiting endlessly,I noticed to day that my comments have now gone live.
    To read my comments,go to:
    http://www.businessworld.in/businessworld/businessworld/content/RBIs-Baby-Steps.html?hopping=2

    J S BROCA
    NEW DELHI
    13th Sept 2011

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