PSBs should learn to say no: Chakrabarty

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danendra jain | 17-Dec-2012Reply | Forward It is unfortunate that bankers instead of curing the sick system , instead of removing corrupt officers from top posts, instead of improving Human Resource policy to make it friendly for real performers, instead of accelerating recovery process, instead of providing adequate manpower , instead of strengthening risk management , instead of gearing up skilllevel of loan processing officers , instead of monitoring tools for keeping their asset healthy , instead of saying spade a spade in time and taking corrective action in time against defaulting borrowers or corrupt loaning officers ------------------------------------------------ Bankers always blame interest rate for worsening asset quality or blaming global recession for rise in bad debts or requesting RBI to reduce Repo rate , reduce CRR or pay interest on CRR to earn profit. It is important to say that even CRR is removed or government permits payment of interest on CRR or reduce repo rate, corrupt , unskilled officer and incompetent officer cannot ensure safety of their assets.These banks have already earned huge profit by reduction in CRR rate and after all liquidity generated by release of CRR or payment of interest on CRR will provide relief for few months and for few quarters only. After Entire CRR is released , bankers will have to accept the bitter truth and will have to cure the system to keep the asset in good condition. Management of public sector banks want to earn profit by exploitation of their workforce and this is why they have stopped recruitment inspite of large scale. expansion of branch network. They do not like to promote real performers and this is why top executives who mostly are in charge of big branches and who sanction high value loans are responsible for abnormal rise in bad assets in these banks. Officers are promoted to top cadre but the health of branch or bank is going from bad to worse. Government will have to make adequate step to ensure that adequate manpower is provided in all branches and corrupt top ranked officers are immediately punished even if he or she is ED or CMD of a bank. If more than 25 % of Branch Managers in a region do not perform , it means Regional Head is incompetent , If most of regional heads are failing in their performance , Zonal head or central office level officers are failure in their task and hence they must be taken to task in the same way these Regional Head or Zonal Head punish Branch Head of Branch officers for non performance.