After the declaration of quarterly result and announcement
of 14% dip in profit accompanied by phenomenal increase in Non Performing Assets
he has openly admitted that chances of NPA coming down are not bright. Most of
the banks have failed to contain NPA despite several advises from Ministry of
Finance though all of them say YES to all what FM says during their meetings
with FM. Thanks to SBI Chairman Mr. Choudhury who has at least the guts to
speak the truth.
Chairman and Managing Directors CMD and Executive Directors
EDs of other public sector banks are ready to sell their respective bank or
spoil the bank's future if Finance Minister or any minister advises to do
anything right or wrong. CMDs of the bank are more interested in their personal
career and hence blindly indulged in flattery,sycophancy and yesmanism. Such men cannot
protect the interest of the bank. They promote flattery and bribery culture
down the line in their bank; they give elevation to officers in career only if
their subordinate officers are number one flattery as happens in other
government departments and party politics. This is why I usually say that
public sector banks cannot rise until top officials are punished for their
faults.
If CMD or ED of any bank fail to achieve the target, if they
fail to stop rising NPA and contain NPA to desired level or they fail to
increase Net interest income or they fail to achieve business target and so on, their non performance or in effectiveness is not a big thing in the eyes of FM
or any minister or any RBI official provided the person is ready to say YES to all what ministers say.
Global recession or natural calamity or economic slowdown is blamed and
accepted as valid excuse for their failure, for all their lapses and for all
their ineffectiveness and corrupt practices.
On the other hand junior level officers are used as
scapegoat for all their faults, juniors are transferred as per their whims and
rejected in promotion processes absolutely as per their whims and fancies. It
is only in government banks that merit is never given weight, where performer
is never promoted and corrupt officers are never punished. It is possible only in banks where flattery and bribery are deciding factor in most of the cases of recruitment , promotion, posting and lending decisions barring a few exceptional cases of honesty
and performance.
Otherwise it is often seen in public sector undertakings
that a person who is star performer in the eyes of his appraiser is later found
to be the most corrupt and most non performing and negligent officer by his
successor if at all he is honest and loyal to the bank or by a minister who is
found to be loyal to the Nation. Only in the past it is found that Mr. O P Bhatt
SBI Chairman was considered as ICON in banking industry was proved bad by his
successor who declared his all bad assets.
Though Present Chairman of SBI is bad in the eyes of FM due to rise in Gross Non Performing Assets in SBI but
all bad assets are (though declared as bad by SBI by present Chairman) are actually created by his predecessors
only. Similar is the cases with so many CMDs of other bank who were or who are considered
as Star Performer by the then Finance Minister were /are later proved spoiler
of their bank. If we go down the line in bank it will be found that officers who was the most corrupt and who was responsible for most of bad debts got easy promotions and only his successor faced the music for faults committed by his predecessors. I do not want to name them because I know Ministers are also of
almost same variety and it is rather they who promote the culture of bribery
and flattery.
There is no doubt to me that actual health of all state run
banks is bad and beyond control. NPA will move from 2 percent to 20 percent as
I or any other prudent banker predicted years before.FM can at most go for
merger and consolidation of banks to hide their evil works and to conceal their
ill deeds.
Top bosses of banks who were considered as Champion of change
management and who were awarded in the past for so called good performances got
retired and now the real picture of their bank is emerging and getting exposed slowly
and gradually. Unfortunately in all cases of bad results , present incumbent is
rebuked and the real culprit goes unattended and unpunished.
Leaders who are well versed in delivery of good lectures and
who are good aerator and who are good manipulators are liked by all who assets.
There is none to assess the ground reality of the bank honestly and none is
actually equipped enough to enable him assess the truth and speak the truth.
Person who present the most shining and the rosiest picture in their Balance
sheet as promoters of Satyam Computers did, are awarded for Good Corporate Governance.
In fact top officials are the real fraud masters and their
masters are greater fraud perpetrators This is why a bank is awarded with more
and more prizes is found in general to be most inefficient and most corrupt. This is tragedy of Indian bosses.
Award the most corrupt and punish the most honest persons
like Khemka and like Ms Durga Nagpal is the Mantra of so called good government
as also that of all so called star performing top bosses in public sector
undertakings. All perches sermons to subordinates on reformation but in fact all promote deformation, damage and destruction.
Only the difference is that IAS officers like Mr. Khemka has the courage and caliber to prove their mentor politicians wrong whereas honest and sincere Bank officers prefer keeping mum on reign of injustice .There are hundreds of honest and sincere officers and hard working clerks in banks who cannot become Yesman to their bosses boycott promotion process and keep silent even if they are transferred to remote places by ill-motivated officers.
Media men may take the case of Ms Durga Nagpal but they are often unaware of what is happening in a bank and what are the root causes of assets going bad .Media men are far away from dirty politics prevailing in government banks.They cannot understand how the best Human resource policies are misused by bankers for their personal gain due to secrecy culture of financial matters.
Only the difference is that IAS officers like Mr. Khemka has the courage and caliber to prove their mentor politicians wrong whereas honest and sincere Bank officers prefer keeping mum on reign of injustice .There are hundreds of honest and sincere officers and hard working clerks in banks who cannot become Yesman to their bosses boycott promotion process and keep silent even if they are transferred to remote places by ill-motivated officers.
Media men may take the case of Ms Durga Nagpal but they are often unaware of what is happening in a bank and what are the root causes of assets going bad .Media men are far away from dirty politics prevailing in government banks.They cannot understand how the best Human resource policies are misused by bankers for their personal gain due to secrecy culture of financial matters.
Chances of bad loans coming down 'not very bright': SBI Chairman Pratip Chaudhuri--ET 13th August 2013
Chances of bad loans and restructured assets coming down at State Bank of IndiaBSE -3.41 % (SBI), the country's largest lender, are "not very bright", Chairman Pratip Chaudhuri said on Monday.
The bank earlier reported a second consecutive drop in quarterly net profit, missing estimates, on worsening asset quality, higher operating expenses and muted growth in interest income.
United Bank Q1 net skids 74%
KOLKATA, AUG. 12:
United Bank of India net profit dropped 74 per cent to Rs 44.73 crore in the first quarter of 2013-14 from Rs 173.89 crore in the corresponding year-ago quarter.
The total income stood at Rs 2,869 crore (Rs 2,499 crore), up 14.79 per cent year-on-year.
Net interest margin was down to 2.28 per cent (3.05 per cent). The bank’s capital adequacy ratio dropped to 10.82 per cent (12.5 per cent).
The bank on Monday said income from loans and advances grew to Rs 2463.74 crore from Rs 2283.81 crore in Q1 of FY13. Non-interest income moved up 88 per cent to 405.06 crore.
Net NPA was at Rs 2,699.59 crore and net the NPA ratio was 3.77 per cent. The bank in a statement said it made a cash recovery of Rs 65.38 crore and the outstanding restructured portfolio was placed at Rs 4,781 crore. It constituted 6.68 per cent of the total advances.
During the quarter, the bank opened 1.33 lakh basic savings and deposit accounts. It has also delivered 9.46 lakh smart cards to financial inclusion beneficiaries.
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