Nobel laureate Abhijit
Banerjee on Tuesday suggested reducing government equity in public
sector banks to below 51 per cent in order to end the fear psychosis of
Addressing a press conference here, the US-based
economist said that fear of investigation by the Central Vigilance
Commission (CVC) in default cases had paralysed the banking system and
bankers do not want to lend. "Reducing government equity in public
sector banks to under 51 per cent will take them out of the CVC
purview," he said.
Refusing to take many questions on the economy
or contentious issues, Banerjee said that in his meeting with Prime
Minister Narendra Modi earlier in the morning, the latter had joked that
the media was trying to trap him and get anti-Modi comments out of him.