This refers to the RBI report which says that of the 85 scheduled banks in the country, 29 are foreign banks, which are mainly operating in the metros. As per the RBI, foreign banks score over Indian banks in terms of efficiency parameters like business per employee, profit per emp-loyee, cost of finds, NPAs, etc.
It also shows that business per employee is Rs 10 crore for foreign banks as against Rs 4.2 crore for Indian banks.
And profits per employee work out to Rs 14.6 lakh for foreign banks as opposed to Rs 2.84 lakh for Indian banks. The main reason for this vast difference in performance is the non-interference by politicians in the working of foreign banks and the strict discipline maintained by them. Can we draw any lessons from this
Land for SEZs
The commerce ministry has done the right thing by asking state governments to exercise caution while acquiring land from farmers for special economic zones (SEZs). This will ensure that concrete jungles do not come up on fertile agricultural land.
In fact, urgent steps need to be taken to prevent people living in our villages from migrating to the cities in search of employment. This can only be made possible by establishing a vast network of grain markets in the rural areas so that farmers are able to get a good price for their harvest. Subhash C Agrawal