At the same time, investors need to be warned that the kind of privatisation we would see, at least initially, can hardly be expected to result in immediate efficiency gains. The RBI would continue to be the largest shareholder, and, for all practical purposes, the Government would still call the shots. The only immediate gain for the bank as a result of the public holding dropping below 50 per cent is that it can get rid of the "public sector" tag, which would free it from the tenderattentions of the Government's investigative agencies.

This is no small gain, as managers would be set free take decisions on a commercial basis, without any fear. It would also lay the foundation for accountability to go hand in hand with performance. But it may be unrealistic to expect any major changes immediately -- the Government still has to contend with the powerful trade unions. At the same time, with the Internet threatening to change the face of banking, public sector banks will have to move fast if they are to keep market share, and, more importantly, share of profits intact. But for that to happen, the Government must be prepared to relinquish control.