In this way, they will be able to contribute to sustainable growth even after the breakdown of the first grand bargain. Freeing public sector banks to compete Let us turn next to the public sector banks. There are well-managed public sector banks across the world and even in India today. So privatization is not necessary to improve the competitiveness of the public sector.
But a change in governance, management, and operational and compensation flexibility are almost surely needed in India to improve the functioning of most PSBs, as the Dr. P.J. Nayak Committee has just reiterated.