``To enable the public sector banks to cope with the rising expectation of their customers in a fast changing environment by quick responses in a truly professional manner, the question of freeing public sector banks from the purview of the CVC deserves serious consideration,'' Vaidya said while addressing the bank's shareholders at the 45th Annual General Meeting (AGM) here on Thursday.

This is for the first time that a public sector bank chairman has come out openly against the CVC's authority to probe public sector banks.

Vaidya said banks should be granted the required autonomy which will increase the accountability of the banks boards significantly.

Further, the SBI chairman suggested that if public sector banks are to effectively face competition from international banks and new generation private sector banks, they have to be nimble-footed like their competitors.

``They should have flexibility and freedom to recruit the best of professionals at the entry level as also induct professionals laterally by offering them market-related compensation package,'' he said.

Earlier, addressing a press conference, Vaidya said that the bank was seriously considering the move to consolidate its seven associate banks.

``Such a move is being considered and after consultations with the trade unions of all the associate banks, some decision can be reached,'' said Vaidya and added that with the fall in interest rate spread, smaller banks would find it difficult to maintain margins,'' he added.

Vaidya, speaking about the depreciation of the rupee vis-a-vis the dollar said, ``there is no great cause for panic and it is just a temporary phase''.Every currency was depreciating in terms of the US dollar but ``things should stabilise now'', he added.

About SBI's voluntary retirement scheme, he said SBI would not force any employee to opt for VRS but instead use them to enhance our business volume by increasing the banking hours.

SBI has no plans to go in for an equity offering in the current fiscal. However, the bank may opt for the subordinated debt route to maintain the capital adequacy ratio at 12 per cent, Vaidya said.

SBI has introduced ``Online SBI'' (Internet banking) from this month in eight branches - three in Mumbai, two in Delhi and one each in Bangalore, Calcutta and in Chennai.

``By March 2001, the bank plans to network 300-400 branches online and almost 1,500 branches by the end of next year'', he said.

On the IT subsidiary, he said, the blue print was being worked out and the committee would submit its report in next 3-4 weeks, he said adding, it would provide technology solutions and advisory services to our associates, other banks and financial institutions.

Initially, the bank would enter life insurance and over next two to three years, look at the general insurance sector, Vaidya said.