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What Are Factors That Are Affecting the Health of PS Banks ?



Danendra Jain

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Nexus of Top Management & Big Corporates and Bulk Loans Bleeding Banking in India :

Big corporatess are looting banks in nexus with top bosses, mid-segment borrowers have looted bank's branches in towns and cities and small borrowers have decided not to repay the bank loan in villages and towns. Slow poison of small bad loans or deep poison of bulk loans , both have harmed banks to a great extent . Bank staff are mostly silent spectator of large scale loot and to save their corrupt colleague they allow Chirharn of good bankers.

 Politiicians are buy  in using banks for political gain and they do not want to punish officials of administrative and legal machineries who are wilfully not acting against defaulters of banks.

Who will save the banks? Who is botherd of bank staff and their families.


Poor Auditing Systems in Banks :

Audit and inspection department of each bank is also manned by dirty officers or are suffering from heavy work load due to less number of staff. They just do the formalaities of auditing and inspecting the branches.They are not allowed to give true report of bad lending and fraudulent transactions even if some of honest auditors like to report on it. They have to give good rating to all branches and submit certificate of good health to their bosses even if they detect cases of fraud or bad loaning by bank officials or any irregulalities.


RBI nominated Statutory auditors or concurrent auditors or RBI inspectors are also functioning in the same way as others are . They are victim of gifts and bribes. They all want red carpet wrlcome by bank officials. Huge money spent on auditors, internal or external after all comes from banks expenditure accounts or bad borrowers who managed all illegal expenses to reamin in good book of banks bosses.


 RBI Fails In Its Duty As Regulator :

RBI believes in getting certificates of good health from bank CEOs. Whenever any exposure of top bosses comes to light , they will write a letter to the concerned bank and bank in turn will give a certificate that everything is OK. RBI has neither will to verif the truth nor do they have enough staff to verify the veracity of such certificates. Several scams and numerous frauds similar to Satyam Scam has surfaced but none of top officials , ministers, politicians, borrowers and government officials have been taken to task. Always a few junior officers are subjected to little punishment to close the cases of frauds and scams involving hundreds and thousands of crores of rupees.


If RBI honestly investigates the reason of each bad accounts of one crore and above I think majority of current or retired CMD, ED, GM, DGM ,AGM and CMs will go to jail. It will not be an exaggeration to say that only and only corrupt officers have reached top levels and only corrupt officers have moved fast in their career. And it is they who have damaged banks and who will further add fuel to fire because till now no concrete step has ben taken to reverse the trend and no action has been taken against real culprit to send clear message down the line that cases of corruption will not be tolerated.

 Similarly Chief Vigilence Officers and CVOs are palying their role . Afte they picked up from gang of courrpt officers sitting at top posts in various banks. CVOs in general are more corrupt and it is they who earn money to close the chapter of corruption for ever. They too do not have enough staff and neither they are dry honest . As such all cases of bad lending or fraud are closed without any drastic action against real culprit




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Pathetic Situation of Aam Banker and Political Games Played by Bank Unions :

Bank staff has lost their self respect and doing slavery to earn their livelihood. Situation is more pathetic than it was before nationalisation.   

Bank staff are subjected to sufferings only to serve the political interest of a few dirty leaders. Dirty game of few selfish leaders has not only ruined the future of bank staff , but also contributed largely in deteriorating health of bank assets and sharp rise in NPA and erosion in profit.

Leaders are mostly followers of left parties which have lost their place in political domain. CPI or CPM minded leaders of UFBU do no want early wage settlement to tarnish the image of BJP and Modi. Some of bank staff blame Mr. Narendra Modi , PM for delay. But in fact neither IBA nor UFBU have ever approached PM Modi for expeditious settlement.


Pending issue of  Wage Revision and Internal Rifts among Banker

A reading of the messages and comments at Face Book clearly indicates that youngsters in Public Sector Banks are mostly crying on Facebook but they do not think it necessary to strictly follow union line of action.

On the other hand Union leaders do not think it necessary to talk to youngsters before taking a final call on any issue.  Leaders act as if they are forced to act. They do not have inner feeling to fight against injustice. 

Young bankers do not make effort and do not have enough courage  to safeguard banks from bad bosses and bad union leaders.

Old leaders are in general speakers of top bosses. Staff in general are afraid of union leaders and not their bosses. There may not be bigger tragedy than this

Wage structure of bankers have suffered erosion in each settlement during last two decades as compared to that of central government employees. . Delay in settlement has become unavoidable .    Is it imaginable for any PSU where wage talks are not finalised even after two years?

 Even other PSUs are paying huge sums in Ex-gratia to all staff of all cadres which is as good as bonus. Bankers are deprived of bonus for last two decades. Only a few Subordinate staff are paid bonus.


Whether Things Are Llikely to  Improve in Near Future ?

I am unable to dream that government of India will be able to control the vicious circle of bad officials sitting in all offices .All top officials preach good sermons and all speak good words when they are addressing public or bank staff but in practice they do just the opposite  . But when someone talk of corruption of high level, they will pass the matter to some others.

 See the latest example of Supreme Court order cancelling allocation of coal mines . More than 25 percent of banks advances are related to infrastructure sector and power sector and most of them have been in bad health for years together and for even decades . But clever politicians and clever bankers have put entire blame on Supreme Court order of cancellation of coal licenses. In 2008 they blamed Subprime crisis of USA and later they accused RBI for not lowering interest rate . None of regulators like to pinpoint accusing fingers towards the real guilty , it is their culture. Who will bell the cat?

 If the same situation persists, bank staff should leave the idea of improvement of banks and should not hope for respectful service and neither hope for respectful wage hike.

 Politicians who have caused much damage to banks to serve their political interest now talk of paying capacity of banks and suggest denial of wage hike as demanded by bank unions on the ground of less profitability and more NPA. Neither Finance Secretary nor FM is bothered of delay in wage settlement and neither they are worried of bank's health. They do not understand that billions of rupees are to protected by bankers and if these bankers are dissatisfied and frustrated, the quality of health will further deteriorate .

They are allowing reckless branch expansion without taking care of quality and quantity of bank staff . Billions of rupees are lost in frauds and scams and bad debts, but the are least bothered. They are positive minded.



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