PSU banks surged like never before on Wednesday led by SBI as governments tonic of capital boost in the coming times gave new lease of life to banking and infrastructure stocks which were on fire. However, not sure if this is an wise move as honest tax payers’ money is being pumped into banks that are inefficient and have NPA and bad debts issues as most of it is on account of lending to dishonest corporates and corrupt individuals.
We are today living in the world of competition and this move to aid the inefficient really surprised one and all more so as citizens tax payments which should have been utilised for their benefits is being used for this wrongful purpose. The move did cheer the bourses but the percentage of citizens investing in stocks to our overall population is miniscule. Government should set their priorities right and honest tax payers’ money should be used for country’s progress and not to induce artificial life in banks that are on the verge of closure!
(The views expressed by the author in the article are his/her own.)