Finance Secretary TV Somanathan said no fresh reforms are on the cards for public sector banks as changes made in the past have borne fruit.
Finance Minister Nirmala Sitharaman in the budget proposed amendments to the RBI Act and the Banking Regulation Act. The contents of the bills are yet to be made public.
"To improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act are proposed," Sitharaman had said in her budget speech.
Speaking to BQ Prime in a post-budget conversation, Finance Secretary TV Somanathan said, "I don't think any major reforms in the governance of PSU banks are on the anvil... that system, with the introduction of the Banks Boards Bureau and the various changes made since 2015, has largely settled down."
The past reforms have borne results, which is evident in the latest results of State Bank of India.
"We see that the reforms have actually worked and I'm not aware of any substantial reforms that are forthcoming on the public sector bank governance," Somanathan said.
Watch the full conversation here:
#BudgetWithBQ | Finance Secretary TV Somanathan spells out the fiscal glide path boundaries, the extent of migration he expects from the new tax regime, the potential of municipal bonds and the Agri accelerator fund. @_janani_jana #Budget2023 #BQLive https://t.co/2akT5NBGXO
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