Finance Minister Arun Jaitley on Monday called on public sector banks to take all commercial decisions without any fear or favour.
He also called on them to ignore extraneous considerations like influence of borrowers while sanctioning loans.
This call comes after Prime Minister Narendra Modi on Saturday promised more freedom to PSU banks at the bank retreat called Gyan Sangam.
During the meet, Modi called for an end to “lazy banking” and stated he was against any political interference in functioning of banks. However, he said he supports necessary “intervention” in the public interest.
He had also called on the banking sector to establish banks which rank among the top banks of the world.
Banks need to be run professionally, he said while assuring them that there would be no interference.
In the said meet, the Finance Minister also pointed out the need for reform in the banking sector while adding that there was a need to give greater autonomy to banks and that non-performing loans in some cases were unacceptable.