The finance ministry has asked all PSU banks to hold board meeting for two consecutive quarters in New Delhi. The reason : the ministry is keen to ensure that one of its officials, DK Mittal, secretary - financial services , is present at all the meetings . The instruction was received by banks early this week.
According to banks, it will help the finance ministry to closely assess the performance of each bank. Also, Mittal, as per the plans, would address the boards to convey his views and the government's expectations from each bank. But, many senior bankers fear that this could lead to excessive interference and micro management. "What about the autonomy that the government keeps talking about?" said a bank chief reacting to the letter.
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