1. End lazy banking, help common man: PM Narendra Modi

End lazy banking, help common man: PM Narendra Modi

Bankers ask govt to implement Nayak panel proposals

By: | Pune | Published: January 4, 2015 12:53 AM
Narendra Modi, Modi gold, Modi banks

Speaking on the last day of the bankers’ retreat, ‘Gyan Sangam’, Prime Minister Narendra Modi said banks need to take a proactive role in helping the common man. (PTI)

Calling for an end to ‘lazy banking’, Prime Minister Narendra Modi on Saturday said he is against any political interference in functioning of banks, but supports necessary ‘intervention’ in public interest. Calling upon the banking sector to establish banks that rank among the top banks of the world, Modi said banks need to be run professionally, assuring them that there would be no interference.

Speaking on the last day of the bankers’ retreat, ‘Gyan Sangam’, Modi said banks need to take a proactive role in helping the common man.

At their end, lenders, in a seven-point agenda submitted by State Bank of India chairman Arundhati Bhattacharya to Prime Minister Narendra Modi, suggested that the government should implement some measures from Reserve Bank of India’s PJ Nayak Committee to change the structure of public sector banks (PSBs) from state-owned to state-linked.

One of the suggestions is to establish a bank board bureau comprising professionals and eminent bankers to appoint and empower individual bank boards. Lenders have also suggested that the government set up a bank investment committee to transfer government holdings in banks. At present, government holding in PSBs is in the range of 56-84% with the highest being in Central Bank of India and the lowest in Bank of Baroda.

Another suggestion was to eliminate market distortions like debt waivers and interest rate caps for agriculture loans below R3 lakh. Both Bhattacharya and RBI governor Raghuram Rajan had earlier expressed concerns about debt waivers after the Andhra Pradesh government had announced waivers last month. Bhattacharya had said it distorts the credit discipline of borrowers and it takes time to restore it.

The presentation said the government should create an environment to protect right decisions and minimise interference of bodies like the Central Vigilance Commission, Comptroller and Auditor General, Central Bureau of Investigation.

Speaking to reporters, DFS secretary Hasmukh Adhia said, “There are processes in place to ensure that there is no corruption among bankers. That is not an issue. In fact, bankers are saying there are too many constraints from all these agencies and so accountability is already there.”

On the issue of human resource in banks, it has been suggested to the government to fully empower banks on HR decisions like recruitment  and compensation. Bankers have also requested that the government should look into strengthening and ensuring implementation of legal framework like debt recovery tribunals (DRTs), securitisation and reconstruction of financial assets and enforcement of security interest (Sarfasei  and willful defaulters.

Lenders have said they would re-orient portfolios for small PSU banks to differentiate, focus on specific niches to build capabilities and to optimise capital. They would also digitise top 30 processes and to deepen mobile banking penetration and deepen their mobile banking penetration.

The confluence

Banks to govt
* Establish bank board bureau with professionals, bankers to appoint, empower bank boards
* Set up bank investment panel; reduce govt holding below 51%
* Protect right decisions, minimise interference,
* Ensure implementation of legal framework — DRT/ SARFASEI/ willful defaulters
* Eliminate market distortions: debt waivers, interest rate caps

Banks to implement
* Re-orient portfolios for small PSU banks to differentiate, focus on specific niches to build capabilities and to optimise capital
* Digitise top 30 processes, deepen mobile banking penetration
* Move towards risk-based pricing of assets
* Create/strengthen credit bureau (rural, SME, corporate)

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  1. Danendra Jain
    Jan 6, 2015 at 5:39 am
    I like to state that Mr. Narendra Modi has asked Bankers to stop Lazy Banking And to Become True Professional. Various bank employees have commented on it and expressed their anger .It is important to mention here that Mr. Modi had fixed a target for bankers to open 7 crore accounts by August 2016 i.e. in 24 months. But bank staff took it so much seriously and sincerely that opened 10 crore bank accounts in 4 months only. Still they are called as LAZY. It is bank staff who are working at least 10 hours per day and even more than that. They work on Sundays and Holidays too to clear backlog if any. It is only banks among all PSUs which keeps all books well balanced and well audited. It is banks where task of branch expansion and ATM expansion is undertaken at the call of RBI and GOI without addition of manpower. Business of banks have increased many times during last ten years but number of manpower have remained almost the same. Each public sector bank has almost doubled their number of branches in the country despite restraint on recruitment imposed by GOI many years ago. It is bank staff who despite huge work pressure complete the task of ry disburt to employees of many departments sacrificing their core work of banking. It is bank staff who perform the task of many Non-banking work like insurance, mutual fund , demat services etc on the advice of government .Ninety nine per cent of bank staff work honestly and devotedly to extend best possible services with available resources. And so on. Still bank staff are considered as lazy and not proactive. God knows and Mr. Modi will tell what term will be appropriate to define the work done by Railways, post offices, airlines, government run hospitals, schools, colleges, and many government departments under central or state governments. Banks have to suffer loss due to exploitation and misuse of banking channel by politicians , But when bank employees demand wage hike , it is denied by IBA and GOI on the plea that banks do not have paying capacity. On the contrary employees of many PSUs are paid higher ry at par with Central Government Employees despite the fact that they are running in loss or they are totally non-functional. BSNL, Indian airlines, Railways are running in losses but they are not only paid higher pay but also bonus in the name of exgratia. And so on.... Will Government promulgate an ordinance or p an act through Parliament that all employees of all sectors will be paid ry and bonuses as per profitability of that organisation? Otherwise common bankers are perfectly justified in raising a question ,"Is it called a reign of justice?" Can bank staff expect for Achhe Din under Modi's regime? Danendra Jain
    Reply
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      Sadasivan
      Jan 4, 2015 at 6:48 am
      A Rothschild has said that:- ALLOW ME TO PRINT THE CURRENCY OF A NATION AND I DO NOT CARE WHO MAKES THE LAWS. If the GOI reduces the stake in PS banks,the RBI which prints India's Money will rule India over and mot the GOI and the RBI is controlled by the IMF which i turn is reportedly controlled by the Rothschilds Please google for:- 1.the Rothschilds control the IMF BIS 2.IMF and the Wold bank destroy Nations 3.IMF hermes-Press
      Reply
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        Sadasivan
        Jan 4, 2015 at 6:44 am
        Do not reduce holding below 51% but increase to 100% else India be taken over by the International bankers. Please google for:- the International Bankers
        Reply
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          Sadasivan
          Jan 4, 2015 at 6:41 am
          PSU banks SHOULD be STATE-OWNED,bankers control nations.hence if the GOI wants ,others NOT to control India but the PEOPLE of India,then PS Banks should be STATE-OWNED,No compromise on that.else,India goes astray ,into the hands of the International Bankers Please google for:- the International Bankers
          Reply

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