PSBs shine bright

With reference to the Editorial ‘Rhetoric to reality’ (February 26), it is highly creditable that public sector banks have started performing better than their private sector counterparts and brought out their inherent potential to the fore in the last quarter.

While State Bank of India led the profit growth with lion’s share, a few other PSBs also have posted double digit growth. Treasury operations of PSBs also contributed significantly to the profitability with major gains reaped by Canara Bank and Bank of Baroda.

Another significant performance point to be noted is the recoveries made in technically written off accounts by PSBs, especially PNB, SBI and Central Bank.

If PSBs can improve their customer service as well, they have the potential to overtake private sector banks in future as well.

Kosaraju Chandramouli

Hyderabad

PSBs, in fine fettle

Apropos, ‘Rhetoric to reality’, (February 26), public sector banks are healthier today because sustained structural clean-up and tighter institutional discipline have fundamentally reengineered balance-sheet quality and risk governance.

Years of aggressive recognition and time-bound resolution of stressed assets compressed legacy NPAs and restored transparency. Improved recoveries through insolvency and settlement frameworks have strengthened cash flows.

Above all, tighter regulatory supervision by RBI has embedded prudent underwriting, continuous monitoring and compliance culture. Collectively, these reforms have revived market confidence, lowered systemic fragility for sustainable credit expansion nationwide today.

N Sadhasiva Reddy

Bengaluru

Push disinvestment

This refers to the article ‘Disinvestment must gather pace’ (February 26). Disinvestment is one of the important capital receipts of the government.

With rising capital expenditure, achieving the disinvestment target (₹80,000 crore for 2026-27) can lessen the government’s fiscal deficit considerably.

Having said that, one feels, the government should monitor the performance of undertakings post-disinvestment phase and get the views of the stakeholders. Privatisation at the expense of public welfare is unwelcome.

S Ramakrishnasayee

Chennai

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bl27 Think1 Letters

Published on February 26, 2026