A Few Reasons For Indian Banks Weakness And Failure

WHERE PUBLIC SECTOR BANKS IN INDIA HAVE FAILED?

Unlike Railways, BSNL/MTNL, IOC, LIC. GIC, SAIL etc., Banks in India have been selling and servicing umpteen number of unrelated products which cannot be called banking at all.  Some 20 years ago, when I saw one public sector bank selling Laddus in Tirupathi (Tirumala) and another selling blades near tonsuring centre there, I was really shell shocked.  This is sheer exploitation of banks by various organs of the society.

We used to say, "A commercial bank has become charitable and a charitable institution like TTD has gone so commercial".

Why should we allow ourselves to be exploited in the name of competition?  Why shall we degrade ourselves in the name of service to the society?

Every industry has got some well established professional code of conduct.  For bankers, have we devised any common code so far?  No, I am not talking about something like BCSBI which is customer-centric and customer focused.  

Have we ever taken an oath that even if we get Rs.100 crores profit in an activity which is not connected to banking or which will lower the dignity of all bank staff put together or which will hurt the nation's pride, we will never take it up or engage ourselves in?  

If not, why?  Have anyone analyzed the reasons?

As I repeatedly emphasize, all banking transactions involve money, but all monetary transactions are not banking.  This is the point where we failed to draw the distinction.

Let us redraw our boundaries clearly and visibly once again.

We do not ask the cricket batsmen to sell cool drinks, when they are off 

the field.   We do not ask the air plane pilots to clean the toilets in the 

airports, when they are enjoying their well deserved rest.  We do not ask 

the scientists to conduct yoga classes for the college students, every 

evening.  We do not ask our teachers to go to nearby petrol stations to fill 

the tanks of all sorts of vehicles visiting there.

We do not ask our bureaucrats to sell vegetables in the market, before 

coming to the office each day.   We do not ask our ministers to sell 

newspapers at all major Railway Stations.

But, why do we want our poor bank officers to do everything?

Let us not change one’s profession or mix/confuse two different professions.  

In a Public Sector Bank, an average bank officer does a little bit of banking and all the remaining jobs handled by him do not befit his stature and cannot be called pure banking.

Who is to take the blame for this ugly development?

All banks collectively.  All Trade Unions in Banks.  And finally, we bank officers who allowed ourselves to be exploited for decades.

When are we going to muster courage and tell our top bosses that business means only business and nothing else?  

When are we going to stand up and tell the government categorically that the public sector banks shall not be used by the political class to achieve their narrow ends?  

When are we going to tell the IBA “Do not take us for granted”?   

When are we going to tell the media “Do not belittle and demean all bankers”?

When are we going to tell our shareholders “Free us from the shackles of social banking and fight for our true autonomy and professional administration”?

When are we going to tell the society “Unless our loans given in the past are repaid to the maximum extent, no further loans will be given for the same purpose/activity”?

Let us have a mass awakening.  Let us have clarity of our noble goals.  Let us be responsible for our words and deeds, but at the same time be respected for being sincere.

More than the bank staff, more than the banking industry, it is the nation’s economy which is being exploited and raped by every class of the society today.  

It must stop and stop immediately forever.

Date: 23-10-2013                                                                                                    V Subramanian