“Rather than conflict between owners and managers of firms, it is the conflict between the interests of minority shareholders and promoters (say business groups) that is more relevant for India and that needs to be addressed. “ (NSE 2001).
In other words, if the governance structures are weak, the risks of private ownership of banks need to be assessed before embarking on large scale privatizations. Fourth, is the performance of PSBs vis-à-vis private sector demonstrably better? The evidence here is not conclusive, because comparison is beset with several difficulties.