by

Danendra Jain [ dkjain49709@gmail.com  ]

When person like me say that game of fraud and manipulation is the key of success in banks and all government offices, it is treated as sign of negativity. Now positive minded persons are slowly and gradually accepting the bitter truth that top officials who were proud for their banks and who used to claim or who used to make promises of becoming number one in banking industry in three to five years were real bluff masters,real manipulators and cheaters with investors, with bank staff and bank customers.

Newspaper link given here will throw adequate light on this bitter truth. RBI set committee has accepted the ground reality of public sector banks.

Media men and veteran economists who are flatterer of ministers and that of Congress Party ,who boast of having best knowledge of economics and who used to predict best future of banks to give a boost to stock prices of banks during last five to ten years will now be exposed.
 

READ the news items published today and submitted below carefully.  This is also the views of media , not mine. I may simply add here that actual of dimension of sickness in state run banks is many times more than what is projected in newspaper and TV media.

RBI or Government of India cannot cure the sickness until they have to first understand the real dimension of sickness, repercussion of growing sickness on other sectors as well as on survival of banks and root causes of the sickness.    If the causes identified as reason of sickness or as symptom of future sickness are wrong and ill motivated , the dignosis prescribed by doctors sitting in RBI and GOI will also fail to arrest growing sickness, rather add fuel to fire.  Real causes are not global recession or high interest rate regime or natural calamities.


Persons who were assigned the duties and responsibilities of framing right policies , executing the policy in right spirit and regulating and monitoring banks to prevent and mitigate risks failed to provide desired safety to banks only because most of them acted as puppet in hands of powerful ministers and powerful politicians.


Trade union leaders in banking industry who were supposed to protect banks and protect the interest of bank staff also thought it better to work in tune with corrupt top bank officials to earn name, fame and wealth .

Top ranked Bank officials and Chief Executive officers of various banks who were given unbridled powers in the name of reformation used the power not to serve the common men and not to safeguard bank's interest but to flatter and win the hearts of ministers and powerful politicians so that they themselves become rich and powerful in the society of High profile people totally neglecting the basic banking business for which banks were nationalised in 1969.


Human Resource Development Department of various Bank ignored the basic tenets of empowerment of workforce,recognition of performing bank staff,basic principles of natural justice to staff who devotedly perform employees and value of experience of employees working in the bank.They promoted nothing but flattery and bribery culture .Mismanagement of top officials during last five tot en years have only resulted in growing quantum of bad assets.


Last but not the least politicians left no stone upturned to exploit banks to serve their self interest and to expand their vote banks.Sometimes they promoted loan Mela culture and some other time they promoted loan waiver culture to please their voters which in turned adversely affected the culture of bank employees.


Unfortunately even Mr. Janardhan Pujari who propagated the theory of mass loan disbursement through loan melas and Mr.V P Singh and Devi Lal who advocated loan waivers as a tool to please voters failed to protect even their political career for long , not to speak of protecting the interest of common men , interest of bank staff and health of banks and that of government of India as a whole.


Now leaders of the country have to think , investigate , analyse and ascertain the pros and cons of three periods of banks, Pre -nationlisation, post nationlisation and post reformation.Then only they can plan the future course of action which will be best suited for Indian banks and Indian people.



Restructuring of advances affecting ‘credibility’ of banking system  :  Click Here to Read the Full Article
http://www.thehindubusinessline.com/industry-and-economy/banking/article3893448.ece?ref=wl_industry-and-economy

Loan recast: Banking system credibility at stake : Click Here to Read the Full Article

http://business-standard.com/india/news/loan-recast-banking-system-credibility-at-stake-rbi/486402/