THERE IS NO DOUBT IN IT THAT DURING LAST FEW YEARS PUBLIC SECTOR BANKS HAVE TOTALLY DISCARDED AGRICULTURE LENDING AND CONCENTRATED MORE ON BULK LENDING TO BIG CORPORATE AND ON RETAIL LENDING LIKE LOAN FOR PURCHASE OF CAR AND HOME.
IF TOP 200 BORROWERS OF ANY GOVERNMENT BANK IS REMOVED FROM BALANCE SHEET OF THAT BANK, THE REAL PICTURE OF LENDING WILL EMERGE AND IT WILL BE PROVED THAT DURING LAST FEW YEARS DISBURSEMENT FOR FARMING HAS COME DOWN AND THIS IS WHY GDP CONTRIBUTION FROM AGRICULTURE HAS ALSO COME DOWN.
THERE IS NO DOUBT THAT VOLUME OF NON PERFORMING ASSETS HAS SEEN UNPRECEDENTED RISE DURING LAST THREE YEARS AT LEAST AFTER THE USE OF SYSTEM DRIVEN MECHANISM TO IDENTIFY ACTUAL NPA.
AS A MATTER OF FACT IN MAD RUSH TO INCREASE PROFIT EXECUTIVES OF BANKS DICTATED THEIR JUNIORS WAYS TO CONCEAL NPA AND TAUGHT HOW TO PUBLISH ATTRACTIVE BALANCE SHEET.
THERE IS NO DOUBT THAT CORRUPTION IN GOVERNMENT BANKS HAS INCREASED AT ALL LEVELS but IT IS invariably POLITICIANS WHO PROTECT THEM.
I SALUTE FINANCE SECRETARY MR. D K MITTAL FOR HIS RELENTLESS EFFORT TO AWAKEN THE SLEEPING BANKERS AND FOR HIS GUIDELINES FOLLOWED BY MONITORING HAS RESULTED IN AWAKENING BANKERS TO GREAT EXTENT AND THEY HAVE NOW UNDERSTOOD THAT THEY CAN NO LONGER MANIPULATE BALANCE SHEET AS PER THEIR WHIMS AND FANCIES.
I salute Respected Sri Mittal that he has made it crystal clear to all banks that performance of bank will be judged non on the basis of their growth in deposit and advances but their performance in recovery of bad loans and growth in profit and CASA
Top executives of banks have TO SERVE COMMON MEN, PARTICIPATE IN SOCIAL WELFARE SCHEMES AND AT THE SAME TIME MAINTAIN QUALITY OF LENDING AND RECOVER MONEY FROM DEFAULTERS
IT IS FORTUNATE OR UNFORTUNATE THAT MR. MITTAL HAS TILL NOW NOT TAKEN ANY PUNITIVE ACTION AGAINST ANY OF TOP EXECUTIVES. HE HAS SIMPLY PREACHED SERMONS TO BANKERS. LET US SEE HOW FAR HE IS SUCCESSFUL IN FORMING THE HABITS OF BANKERS.
AS LONG AS THE TOP RANKED OFFICERS ARE not TAKEN TO TASK FOR THEIR CORRUPT PRACTICES IN RECRUITMENT, PROMOTION AND POSTING, NONE CAN DREAM OF ANY CHANGE IN CORRUPT CULTURE prevalent in public sector banks. THIS IS MY STRONG CONVICTION AND INDISPUTABLE VIEW.
QUALITY OF OFFICERS HEADING THE BRANCHES IS SO POOR THAT THEY CANNOT BE EXPECTED TO DO SAFE LENDING AND they cannot be expected of protecting BANK FROM GROWTH IN BAD ASSETS AND FROM DETERIORATION IN CUSTOMER SERVICE.
As long as seniors are not given their due respect one cannot imagine of any drastic change in deep rooted corrupt culture and to expect phenomenal improvement in bottom line from such guidelines without ensuring execution will be as good as wondering in dreamland .
I do not find any logic justifiable to justify the recruitment of officers in upper scale and denial to seniors of their right of promotions .
Young officers promoted to scale IV or V in ten years of service will have far reaching adverse effects and the consequence of the same will be visible in due course.
If sons and daughter in a family do not respect their parent and consequence of such indiscipline may be guessed by any prudent person and unbiased
What Wrong Finance Secretary Mr. Mittal IS Doing?
This refers to editorial published Today the 27th July 2102 in Economic Times titled as “Leave Banking Be”.
It is true that Mr. Mittal has issued many guidelines in last few months against the tradition of his predecessors who were silent spectators of all right and wrongs of bankers.