Hyderabad: Disagreeing with the notion that public sector cannot be as competitive and efficacious as public sector, President Pranab Mukherjee on Friday said what is required is efficiency in management of resources.
Citing the example of Indian PSU banks, he said prudent management has enabled them to remain strong at a time when major banks in various parts of the world failed due to economic crises.
"Public sector still plays important role and it is doing so. Public sector banks. Who can deny the fact that if Indian banking system did not follow prudent management, they would have faced the same situation which most of the powerful banks in the world, European banks, American banks which crumbled like pack of cards. It is world recognized," he said speaking at a book release function here this evening.
The effective management of Indian banking system was appreciated by foreigners when he had participated in meetings abroad as Finance Minister, Mukherjee said.
He said that as Finance Minister he did not have to provide budgetary support to the banks though he provided support for expansion of capital.
"Therefore, it is not correct to say that public sector cannot function, private sector alone can function. What is required is efficiency, efficient use of capital, efficient use of resources, human resources, financial resources, enhancement of productivity, that is the requirement," he said.