Facts checked 29 September 2026 for the CAT 2026 cycle
WAT Topic: "Should privatization of banks be accelerated?" - economic category, hard difficulty. Consider 2 perspectives for a balanced essay.
Reference the strategic sale of the government's and LIC's 60.72% stake in IDBI Bank, where revised bids from Fairfax and Emirates NBD were under evaluation in September 2026. State your position upfront.
Para 1: The efficiency argument, with the current health of public sector banks
Para 2: The inclusion argument with rural banking
Para 3: Middle path: selective sales with safeguards
Advocate for selective privatization while strengthening regulation.
Public sector banks: gross NPA ratio of 1.93% at 31 March 2026, the lowest on record (PIB, May 2026)
Public sector banks: net profit of Rs 1.98 lakh crore in FY 2025-26 (PIB)
The government and LIC are selling 60.72% of IDBI Bank; revised bids were under evaluation in September 2026
Public sector banks were consolidated from 27 in 2017 to 12 after the 2019 mergers
Not knowing the difference between public sector and private banks
Quoting old NPA figures as if they were current
Forgetting about financial inclusion implications
Know the present state of public sector banks (gross NPA ratio 1.93% in March 2026), the 2019 mergers, and the IDBI Bank sale. Do not quote the older Rs 7 lakh crore NPA figures.
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.
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.
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.
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.
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.
Practical, business-oriented evaluation. Values structured thinking.
Tip: IIMB appreciates when you connect topics to business/management implications. Always include "so what" for managers.
Rigorous analytical approach. Values data and economic reasoning.
Tip: IIMC loves numbers. Include at least one relevant statistic. Show you understand economic trade-offs.
Balanced evaluation of content and expression.
Tip: IIML values clear structure. Use explicit transitions and signposting.
Ethics-focused, values human-centric perspectives.
Tip: XLRI's Jesuit heritage means they value ethical dimensions. Always consider the human/social impact angle.
There's no "right" stance. What matters is taking a clear position and defending it well. Know the present state of public sector banks (gross NPA ratio 1.93% in March 2026), the 2019 mergers, and the IDBI Bank sale. Do not quote the older Rs 7 lakh crore NPA figures.
Nobody outside the institute can say. IIMs set the essay topic on the day. This topic is tied to an issue that was current in September 2026, and the statistics on this page carry their source and date, so use it for practice.
Reference the strategic sale of the government's and LIC's 60.72% stake in IDBI Bank, where revised bids from Fairfax and Emirates NBD were under evaluation in September 2026. State your position upfront. Your body should cover: Para 1: The efficiency argument, with the current health of public sector banks; Para 2: The inclusion argument with rural banking; Para 3: Middle path: selective sales with safeguards.
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