SBI: Not the right time to privatise the public banks

New Delhi, April 6: The time is not right for privatisation of public sector banks (PSBs), though some of them could be divested by the government after making them financially attractive, according to a top banker.

"The time, though, is not right at present, because these banks would need time to be strengthened and one has to put behind the turmoil in the banking sector," Rajnish Kumar, Chairman of State Bank of India (SBI), said.

He said that because of the perception that the banking system was going through a turmoil following the fraud discovered in the Punjab National Bank, the markets may not react favourably to such a move. "In any case, before privatisation, banks need to be made stronger so that they fetch the right price," he said.

According to him, it would take at least two years for the banks to be strengthened for divestment.