Economic & BusinessHard DifficultyTrending 2025

Should privatization of banks be accelerated?

Asked by: IIM Calcutta, IIM Ahmedabad (2024)

Quick Answer

WAT Topic: "Should privatization of banks be accelerated?" - economic category, hard difficulty. Consider 2 perspectives for a balanced essay.

Both Perspectives

For Privatization

  • 1PSBs have ₹7+ lakh crore NPAs — private banks are more efficient
  • 2Competition improves services and reduces crony lending
  • 3Government capital better spent on infrastructure/welfare
  • 4Global trend: most developed nations have privatized banks

Against Privatization

  • 1Financial inclusion requires PSB presence in rural areas
  • 2Private banks won't serve unprofitable but essential sectors
  • 3Yes Bank, PMC Bank crises show private bank risks
  • 4Strategic sectors need government control for stability

Sample Essay Structure

Introduction

Reference the recent Banking Laws Amendment Bill discussions. State your nuanced position upfront.

Body Paragraphs

1

Para 1: The efficiency argument with NPA data

2

Para 2: The inclusion argument with rural banking statistics

3

Para 3: Middle path — strategic privatization with safeguards

Conclusion

Advocate for selective privatization while strengthening regulation.

Key Statistics to Use

📊

PSB NPAs: ₹7.4 lakh crore (2023)

📊

PSBs control 60% of India's banking assets

📊

Only 27% of villages have bank branches

Common Mistakes

Not knowing the difference between PSBs and private banks

Ignoring the Yes Bank/PMC Bank crises

Forgetting about financial inclusion implications

Pro Tip

IIMC loves this topic. Know NPA numbers, recent bank mergers, and NARCL (bad bank).

Writing Framework (Applies to All WAT)

Aristotle

Rhetoric (4th Century BC)

Insight: Persuasion requires ethos (credibility), pathos (emotion), and logos (logic) working together.

How to apply: Structure your WAT with logical arguments (logos), establish credibility through data/examples (ethos), and connect to human impact (pathos). IIM evaluators look for all three.

Chip & Dan Heath

Made to Stick (2007)

Insight: Ideas that stick are Simple, Unexpected, Concrete, Credible, Emotional, and tell Stories (SUCCESs).

How to apply: Open with an unexpected fact or angle. Use concrete examples, not abstractions. Ground arguments in credible data. Make it memorable.

Steven Pinker

The Sense of Style (2014)

Insight: Good writing is about showing the reader something in the world, not performing your knowledge.

How to apply: Don't write to impress—write to illuminate. Avoid jargon and pompous language. Show you understand the issue, don't just list points.

George Orwell

Politics and the English Language (1946)

Insight: Clear thinking leads to clear writing. Never use a long word where a short one will do.

How to apply: Prefer active voice. Cut unnecessary words. If you can cut a word, cut it. Clarity beats complexity in 200-word essays.

School-Specific WAT Styles

IIM Ahmedabad

Values original thinking and nuanced positions over conventional wisdom.

Tip: IIMA loves contrarian but well-reasoned takes. Don't be afraid to challenge the premise of the topic itself.

IIM Bangalore

Practical, business-oriented evaluation. Values structured thinking.

Tip: IIMB appreciates when you connect topics to business/management implications. Always include "so what" for managers.

IIM Calcutta

Rigorous analytical approach. Values data and economic reasoning.

Tip: IIMC loves numbers. Include at least one relevant statistic. Show you understand economic trade-offs.

IIM Lucknow

Balanced evaluation of content and expression.

Tip: IIML values clear structure. Use explicit transitions and signposting.

XLRI Jamshedpur

Ethics-focused, values human-centric perspectives.

Tip: XLRI's Jesuit heritage means they value ethical dimensions. Always consider the human/social impact angle.

Frequently Asked Questions

What stance should I take on "Should privatization of banks be accelerated?"?

There's no "right" stance. What matters is taking a clear position and defending it well. IIMC loves this topic. Know NPA numbers, recent bank mergers, and NARCL (bad bank).

Which IIMs have asked about Should privatization of banks be accelerated??

This topic has been asked by: IIM Calcutta, IIM Ahmedabad (most recently in 2024).

How do I structure my WAT on this topic?

Reference the recent Banking Laws Amendment Bill discussions. State your nuanced position upfront. Your body should cover: Para 1: The efficiency argument with NPA data; Para 2: The inclusion argument with rural banking statistics; Para 3: Middle path — strategic privatization with safeguards.

Related WAT Topics

Key Takeaways

  • 1Introduction: Reference the recent Banking Laws Amendment Bill discussions. State your nuanced position upfront.
  • 2Key argument: Para 1: The efficiency argument with NPA data
  • 3PSB NPAs: ₹7.4 lakh crore (2023)
  • 4PSBs control 60% of India's banking assets
  • 5Pro tip: IIMC loves this topic. Know NPA numbers, recent bank mergers, and NARCL (bad bank).

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