REST, LEAVE AND HEALTHLeave for valid and genuine reasons is often denied, even for shorter duration. At many places, staff are compelled to attend office on Sundays and other holidays on the pretext of some urgent work. Recovery Drives and Road Shows are deliberately conducted on Sundays and other holidays. Managers’ Conferences and Review meetings are conducted on Saturday afternoons. All such things not only deprive the officers of their valuable time, but does grave injustice to the other members of the officer’s family who look up to the officer for some help, care and physical support at least on such designated holidays. Thus, the whole family gets frustrated and anguished. This is another area where the managements of the public sector banks have earned the displeasure and wrath of their own staff and their families.
On working days too, taking well-deserved breaks for 5 or 10 minutes after every 2 hours of hectic and serious work is viewed with disdain and disapproval. Personnel having conversation with neighbours (colleagues occupying the adjacent seats) in the office are frowned upon, as though they shirk their responsibility, idle away their time in the office and just loiter around, disturbing other serious workers too. But this kind of thinking will develop only in the minds of perverted persons who are ignorant of group dynamics and who consider human beings also as any other machine without any feeling, emotional needs or social pressure.
Personnel are unable to take their lunch or supper at the scheduled time, because of the work pressure, continuous nagging by their bosses and long hours of work. This affects their morale and motivation and it gets reflected in the quality of their output. As another consequence, these officers lose their emotional balance, ruining and shattering their self-confidence and stability. They lose their concentration in the work and commit mistakes also, without their being aware of it.
It is a big tragedy that the physical and mental health of the officer personnel today has been greatly affected, as compared to their counterparts a few decades ago. Hypertension, Diabetes, Neurological disorders, Displaced aggression, Impaired vision (eye-sight) and Shortened life span are all the gifts of the present day’s work culture.
People are required to come to the office even when they are ill or someone in their family is seriously ill. They are expected to perform their regular and special duties, without any break. No consideration or leniency is shown to people with personal problems (except physical handicap). Thus, people are treated on a par with senseless machines and domestic animals.
The managements have never attempted to analyze as to why so many officers take pre-mature retirement (VRS) or what are the causes that result in so many officers’ death, while in service. Answers to these questions require deeper and impartial probe with an open mind and once the answers are found, they will truly be an eye-opener for the managements of the public sector banks. Then, it is hoped, the bank managements will redraw their policies and practices so as to function as a fair and responsible employer in the banking industry.
But, there appears to be a wrong perception on the part of the managements that any staff accountability study must necessarily result in conviction and punishment of at least one or a few staff members and then only the relative case file can be allowed to be closed even for certain alleged procedural lapses. This sadistic outlook must change.
Systems and Practices in place in different public sector banks must be studied, compared and analyzed and the best positive reforms are to be identified and introduced in each bank, to restore the confidence of the officer community and to boost their sagging morale. The innocent officers are to be shielded and saved by the management like a mother protecting her young ones even when her own life is in peril.
- The present day youngsters are better qualified.
- They are more tech-savvy than their seniors.
- They are very agile and more dynamic.
- They are more goal oriented.
- They have longer innings left in the organization.
- Seniors by and large are better experienced and have greater exposure to various dimensions of banking and geographical regions.
- Their problem solving abilities in different situations and contexts are well documented.
- They are already well fit into the organizational culture.
- Their character and conduct are known to the management.
- They possess more loyalty to the organization, because of their long association with it.
- They accept greater responsibilities without any hesitation.
- As they belong to the older generation, they don’t indulge in manipulation and exploitation of the bank, for their personal benefit (there may be negligible exceptions).
- They have more commitments in personal life.
- Many of them do not show interest in promotions, after a particular age, say 50 years.
- They are not as flexible as the management expects them to be, even if they are very honest (Here, ‘flexibility’ means pliability).
- Since many of the seniors have been bye-passed by many top level managers of the day, the management fears that the seniors cannot be ‘controlled’ by their young bosses easily.
- As compared to their seniors, those who joined very recently are young and dynamic.
- They are better qualified academically.
- Being raw hands, they can be indoctrinated and moulded as desired by the management.
- Since they have a long career ahead, they can be groomed to shoulder higher responsibilities in future.
- They are more tech-savvy.
- They are raw and inexperienced. They have to go a long way to learn the practical, statutory, regulatory and legal aspects of banking.
- Because they are fresh and better qualified, they behave rudely and arrogantly.
- They have very high and unreasonable expectations.
- They do not have loyalty to the organization that has invested huge amounts in recruiting, training and developing them.
- Past statistics stand testimony to the high degree of attrition among the newly recruited persons.
Seniors are slow, lazy and inefficient and they resist changes. They do not move with the times and after reaching certain position/level, they become stagnant/obsolete.
This is a sweeping generalization. While it is true that seniors have greater commitments in their personal life, they have never resisted changes. Most of the seniors continue to exhibit enthusiasm in adopting new practices and perform well. They not only adapt quickly to any technological and organizational changes, but they themselves have been the vanguard of many changes and innovations. They are good at using appropriate strategy and reaching the goals, by virtue of their long experience and the varieties of skills acquired by them over a period of time. In very explosive situations, they are the ones who are sent by the management to defuse the situation and bring it under control. In case of customer complaints too, they are deputed to the scene of occurrence to pacify the customer, investigate the case and to help the management to take suitable remedial action.
They are less tech savvy.
Majority of the seniors have learnt the modern developments in banking and information technology. They have demonstrated their prowess and succeeded in utilizing their knowledge and skills for the betterment and growth of their organization. Customers have no complaints with regard to seniors in timely delivery of services and satisfying most of their needs and wants using latest technology.
They are less mobile.
This is a big lie. In fact, they are the ones who are posted to remote and far flung areas, regardless of their age and family commitments.
They are inflexible and rigid postured.
It is the management that has taken them for granted. Because of the existence of the entry and exit barriers in India, the seniors are treated shabbily and unjustly, as they cannot exit the organization easily. Not yielding to undue pressures from the management shall not be called inflexibility.
They are very expensive to the organization.
Salaries and Allowances paid to staff rise with their experience and it is a universally accepted principle. But excepting mere wages, the money and other resources invested in young staff by the banks are very huge and simply incomparable.
They develop vested interests, in course of time.
This is a baseless accusation. For the mistakes committed by somebody, blame shall not be laid on the entire bloc of seniors. Alright, what is the guarantee that the youngsters also will not develop vested interests in future? We see many young employees also abusing their position, to promote their personal interests – business or otherwise.
As they move close to their retirement, their contribution comes down gradually.
This is also not true in all the cases. Many staff members at the fag end of their career continue to show the same degree of enthusiasm that they showed when they were young. In fact, they produce greater output and shoulder higher responsibilities with absolute ease and total confidence, as they gain more and more wisdom and experience in the bank.
They are young and dynamic.
The very fact that they are young does not mean that they are quick in disposal of papers that come to them. Similarly, due to lack of deep knowledge in banking, they are slow in taking decisions and owning responsibility for what they do.
They are better qualified.
Unfortunately, the qualifications of the newly recruited staff in Clerical and Officer cadres are not at all connected to banking. Many of them having professional qualifications do not have intention to stay long in the bank. The high degree of attrition among them provides ample evidence to prove this.
They are tech savvy.
It is true that they are more tech savvy, because they belong to the present generation. But, sadly they do not utilize all their computer skills for the organization. We can see many youngsters speaking on their mobile phones frequently and for long time during business hours, mindless of the work accumulating on their desks and the customers queuing in front of them. They watch live cricket telecast on their smart phones/tabs during office hours. They listen to music by putting on head phone and live in some other world, when the pressure of work keeps mounting. They do not realize the urgency of anything and take things so casually.
They are more liberal and forward looking.
Except planning for their own growth, they do not have vision for the future of the organization. Since they are new to the banking industry itself, it is not their fault.
Whether one is conservative or liberal cannot be judged that easily. What was considered wrong, immoral and unethical in the past may appear right, fair and acceptable to the present generation. Therefore, for them, ends justify the means.
Their output is greater.
In reality, their output is less, owing to these reasons.
They are more mobile.
It may sound strange, but it is true. More than the seniors, these juniors do not want to be posted/transferred to far off places and outside their home state. They try their best and manage to get posting to a place closer their home. Moreover, all the remote, rural and semi-urban centres are reserved for seniors only. Sadly, the managements also accept their line of thinking and oblige them readily.
Since they are raw, the management can easily mould them, suiting its expectations and needs.
By virtue of their higher academic qualifications and because of their age, the youngsters exhibit rudeness and arrogance and do not respect the elders, seniors and their immediate superiors. They keep in direct touch with top management which also tacitly encourages them to bye-pass their superiors. The youngsters do not have the quality of teamspirit and are so selfish. They claim credit for that all the successes. For any failure, they squarely blame their seniors and other colleagues for non-cooperation and inefficiency.
About Juniors (continued)
They are less expensive to the organization.
Excepting mere wages, the money and other resources invested in young staff by the banks today are very huge and simply incomparable.
Since there are large scale retirements (superannuation) in the next 2 years, the management is afraid to lose their services. The management struggles a lot to retain them and is prepared to go to any length to please them and to pay any price to stop their exit. That is the stark reality.
They do not have any vested interests.
What is the guarantee that the youngsters also will not develop vested interests in future? Nobody can predict now as to how they will shape up and grow in future. We see many young employees also abusing their position, to promote their personal interests – business or otherwise.
They are the future face of the organization. Therefore, they require full support and blessings of the management.
The management throws its full weight behind them and goes the whole hog in grooming them, at the expense of their seniors.
After receiving all the benefits starting from cornering coveted positions and plum postings to getting frequent trainings (that are out of bounds for the seniors even in their dreams) and quick and regular promotions, they leave the organization for better position elsewhere, within a few years. Oh, what a betrayal!
- Academic achievements
- Professional and technical skills
- Whether the employee gives his/her best to the organization?
- Knowledge, clarity of thought and expression and persuasive skills
- Proficiency in Languages
- Kinds of Roles and Assignments handled so far
- Potential for further development
- Willingness to accept higher responsibilities and shoulder more risks
- Proven capabilities in leading a team/Managerial Abilities
- Honesty and Integrity
- Focus and keenness in Customer Service
- Marketing Skills and Business development
- Whether he/she is liked by majority of the people who know him in the organizational context?
- Whether he/she utilizes the delegated authority judiciously and to the optimum level?
- Whether he/she avoids taking risks with a view to maintain immaculate record?
- Multi-Disciplinary Approach versus Specialisation in a single area
- Service in different geographical regions
- Espirit de Corps and Superordinate Goals
- Loyalty to the organization
- General Character and Conduct
- Compliance with Statutory, Regulatory and Legal requirements
- Reporting – Keeping the higher officials posted with latest developments, concerning all important matters, regularly
07.02.2016 Economic Times
RBI has rightly suggested that working of public sector banks should be delinked from social banking to make them efficient and allow them to work on commercial principles The frictions that hinder the performance PSBs need to be completely eliminated and they should be allowed to work on commercial principles. RBI further suggested that the costs of social banking have to be provided for separately. If that is through budgetary support, the government may be more than compensated through increased revenues from and valuations of PSBs
Read more at:
I submit below some old blogs written by me with their links which are enough to say that without improving Human resource practices , public sector banks cannot dream of improvement in assets of banks.
Can Public Sector Banks Survive Without Government Support?
Now it has become crystal clear to all that management of every public sector bank are to suffer more pain and face erosion in profit and even incur loss if RBI Governor Mr Rajan remain rigid on his stand that all banks should clean their balance sheets latest by March 2017 and should increase provisions on stressed assets identified by RBI latest by March 2016. This has become more evident when SBI Chairman expressed apprehension of sharp rise in NPA and fall in profit.
Now there is no doubt that Chiefs of all banks including so called strong bank like SBI had resorted to hiding of bad debts using illegal and unethical ways and tools in all preceding financial years to inflate profit ,to earn unjustified incentive and to get quicker promotion.
They all are guilty of window dressing. In the past they all were caught committing fraud in making inadequate or no provisions for staff terminal benefits payable to them on retirement.
Inspite of all warnings issued by RBI and Ministry of finance not o inflate business and profit of bank by window dressing, Chiefs of every bank ignored and disobeyed such warning ,and they have been doing so year after year. Who will punish such high profile fraud masters?
As a matter of fact ,branch heads of almost all branches of all banks are resorting to window dressing and to conceal stressed assets by using wrong and improper ways. This culture of playing foul game is very old and promoted and irrigated by all top officials . Junior officers have to dance as per direction given to them by their seniors. RBI and GOI have been silent spectator of all such game of manipulation for decades.
I may say that without manipulation , PSB cannot earn profit because the culture of lending is erroneous, culture of promotion in PSB is flattery and bribery based and because politicians use PSB to enhance their vote bank. Unless and until there is change in DNA of bankers and politicians, there is no guarantee that creation of bad assets will stop rising. Bankers will continue to blame economic slowdown or global recession and continue to cause loss to their bank in greed of getting self interest served and on the contrary private banks will continue to boost up their profit and business quarter after quarter.
Shares of banks with exposure to large corporates have come under selling pressure in recent weeks with those in the public sector bearing the brunt. The stock market value of one private bank HDFC Bank is now almost the same as that of State Bank of India and all the 20 nationalized banks put together. These 21 banks control over 70% of bank lending in the country whereas HDFC Bank, the country's second largest private lender, accounts for 6%. This proves that investors do not have trust on functioning and financial figures of public sector banks and they do not have trust on quality of assets of PSU banks and SBI . They know it very well that these banks are hiding bad assets in their books to reduce burden of provisioning and to inflate profit.
It is however a matter of pleasure that RBI Governor Mr. R Rajan has taken some step to clean balance sheet of public banks and State bank of India . It is true that if all banks honestly declare all bad asses as bad, there will be voluminous jump in value of bad assets . As on September 2015, Gross NPA of banks have crossed 6% of total assets and that of stressed assets have crossed 14% . But if all hidden stressed assets are exposed honestly, Gross NPA will rise to more than 25 % .
It is another matter of pleasure that RBI official and the government has assured it will provide public sector banks all the capital they need to grow their business and the central bank will release regulatory capital if required.
Let us see how far bankers act honestly and how far RBI officials and government officials are able to punish bank officials who still indulge in window dressing to hide NPA and those who perpetuate culture of treating bad assets as standard assets.
PSU banks were guided by RBI credit policy which used to focus on business loan, farming loans and loans to traders and these loan were considered as priority sector loans. But in course of time , government discarded social banking and started focusing on commercial banking. Consumption of petrol and diesel started increasing which not only caused huge pollution in air but also affected trade balance to a great extent.
Stop repeated loan restructuring of corporates to avoid NPAs’-The Hindu 14.01.2014State-owned banks should stop "ever-greening" or repeated restructuring of corporate debt to check the constant bulging of their Non-Performing Assets, members of a Parliamentary panel said on Friday.
The spiralling of NPAs is due to bad economic situation, observed the members of the Parliamentary Standing Committee on Finance - headed by former finance minister and senior BJP leader Yashwant Sinha, but emphasised that the NPA situation is horrendous and requires urgent attention.
"The committees’ suggestion to curb NPAs is that banks must stop ever-greening of loans. If there is strong case for restructuring, then go ahead and do it. But do not go on doing it repeatedly," a member of the panel said after the meeting.
The members were of the view that NPAs are the result of bad economic situation, but there were also management issue of every-greening of loans which could be avoided by "not renewing loans, particularly of corporates", the member said.
In view of the worsening NPA situation, it is the direct responsibility of the Reserve Bank to rectify the problem, he said, adding that RBI Governor Raghuram Rajan would appear before the panel on February 4.
"He could not find time today. We have decided that we will interact with him on NPAs on February 4, one day before the Parliament session begins," the member said.
NPAs of public sector banks rose by 28.5 per cent from Rs 1.83 lakh crore in March, 2013 to Rs 2.36 lakh crore in September, as per the information provided by the Finance Ministry to Parliament in the recent Winter Session.
Total NPAs had gone up to Rs 1.37 lakh crore in March, 2012 from Rs 94,121 crore in March 2011. Thus the amount of NPA in September last year was more than double of what was in March 2011.
According to the information provided by Finance Ministry, top 30 loan defaulters of public sector banks (PSBs) account for more than a third of the total gross NPAs of the state-run lenders.
"The ratio of top 30 NPAs as a percentage of gross NPAs, in respect of public sector banks, as on September 2013 is 35.5 per cent and for all banks it is 38.8 per cent," Finance Minister P Chidambaram had said in a reply to the Rajya Sabha.
The Gross NPA amount of top 30 accounts of public sector banks (PSBs) stood at Rs 72,174 crore, while for all banks it was Rs 91,667 crore at the end of September.
In case of nationalised banks, top 30 defaulters contributed 43.8 per cent to the GNPA with Rs 55,663 crore.
Forensic audit must for all bad loans, Parliament Panel to RBI -The Hindu Business LIneA. M. Jigeesh
Cautioning that the rising trend of non performing assets (NPAs) with banks has "the potential to damage the growth story", the Finance Standing Committee of Parliament has called for immediate forensic audit of all restructured loans that had turned into bad debts.
Forensic audit is also required for wilful defaults and Reserve Bank of India (India) has been asked to prepare guidelines for the process. The analytical reports of the forensic audit should be submitted to the panel in six months, it said in its report, which was adopted here on Friday.
"We have adopted the report. We will submit it to the Speaker," said Veerappa Moily, Chairman of the panel and senior Congress MP, after the meeting.
The panel asked the apex bank to form empowered committees at the level of RBI, banks and borrowers to monitor large loans.
As on September 2015, net NPAs of public sector banks stood at ₹ 2,05,024 crore and may reach Rs. 4 lakh crore by the end of this fiscal, the panel said, adding that such a huge figure "raises questions" on the credibility of mechanisms to deal with NPAs.
The report said wilful defaulters owe public sector banks ₹ 64,335 crore, which constitutes about 21 per cent of total NPAs, and called for making public the names of the top 30 stressed accounts of each bank, in the category of wilful defaulters. There is no justification of keeping the names secret and asked the RBI to amend its guidelines, it added.
RBI, as a regulator, did not succeed in implementing its own guidelines, it said, an asked the apex bank to proactive and monitor the issue on a regular basis.
The panel also recommended the development of a "vibrant bond market" to finance infrastructure products. Batting for large infrastructural projects, it said the Centre should revive Development Financial Institutions for long-term financing of such projects and urged the Centre to also allow Infrastructure Finance Companies to buy infrastructure projects turning into NPAs and keep them as standard assets.
The report noted that in majority of the cases, corporate debt restructuring (CDR) mechanisms had failed to achieve the desired objectives, adding that there should be a definite timeline of six months to settle CDR cases. In 2014-15, most of the slippages came from restructured debt.
On strategic debt restructuring, the report said it could empower banks to take control of the defaulting entity, and recommended that a change in management must be made mandatory in cases involving wilful default.
The prolonged slowdown in the economy has eroded the market for distressed assets so much so that even Asset Reconstruction Companies found it hard to offload these, the committee observed, adding that RBI should consider creating a dispensation that allows banks to write off losses in a staggered manner.
Parliament panel to examine reasons for high NPAs in public sector banks-Business TodayKartikeya Sharma New Delhi Last Updated: January 13, 2014
Another fraud of bill discounting came to light in the same fortnight when fake bills or say accommodation bills have been discounted by one of branches of Bank of Baroda and it is now difficult to recover Rs.350 crore from the company which committed fraud with bank.
Latest news is that The Enforcement Directorate has unearthed one more forex scam. This time it involves a total of 7 banks including Oriental Bank of Commerce , Axis Bank , ICICI , IndusInd , Kotak Mahindra , DCB , Dhanalaxmi Bank. The ED has arrested one Manish Jain under the Prevention of Money Laundering Scam. Jain transferred more than Rs 500 crore through 70 fake bank accounts. Jain was also sending money in the garb of imports and exports. He used to send money to Hong Kong in HSBC Bank and further to China. The money was remitted out of India illegally against the imports which actually never took place.
Last year also fraud through remittances involving many bank amounting to Rs.150000 crore was unearthed. We are also aware of global forex scam involving Rs.36000 crore of rupees.