Future of Government Banks

Advanced technology called as Core banking Solutions,ATM, Mobile banking, Internet Banking, etc are attractions of modern day bankers. But safety measures are not in place to meet the challenges posed by hackers and fraud masters who may cause unprecedented loss to banks and to its customers by using the same technology. Banks lack advanced safety measures to counter the threats of  IT . Unfortunately IT specialist themselves are not aware of probable threats , what to speak of general bank employees who are doing their jobs somehow or the other by leaning a few commands and who largely depend of IT department of the bank.

Books are audited by incapable auditors, unwilled auditors and greedy Chartered accountants. In India where Chartered Accountants prepare balance sheet of a business not based on real performance in business but based on the need of finance proposed by businessmen, lending decisions are taken by bankers based on rosy balance sheets prepared  by such greedy and corrupt CAs.

Banks appoint vigilance officers who are themselves of corrupt background and who get money even in closure of reports against erring officials.

Management of risk is on the shoulders of those who do not know even ABC of practical banking. Credit rating agencies like CRISIL, ICRA ,FITCH etc are charging exorbitant fees because they know the intention of bankers and businessmen who are forced to opt for external rating.

Department of Human resource management is manned by who do not have any idea of managing people and who do not how to encourage work culture. Transfer and promotions take place not as per inherent quality and experience of the person but based on flattery and bribery. Even recruitments are taking place in higher scales from campus where sons and daughters of executives are admitted. Experience of existing staff is no more important in banking. Good looking faces and ornamental MBA degrees are preferred and practical knowledge of existing staff is of significance.

Faculty members in training centers are such who possesses degree but do not have quality to teach. In schools and colleges teaching aptitude is given preference in selection of teachers, but in departmental internal training power point presentation is resorted to impart training.

Credit officers do not understand the pros and cons of financials of any borrower or prospective borrower .Financials of businessmen are given more value than the creditworthiness of the person who are promoters of the business.

Empanelled Valuers are those who value a property not as per market trend but based on fee they are paid. Advocates are those who can give positive legal opinion in respect of even disputed or non-existent land if they are paid fee as per their whims and fancies.

Rating agencies rate a bank based on financials shown by bankers and not in a position to understand what is hidden behind the mechanized system .Bankers believe on rating done by greedy officials of rating agencies.

Officers who do not know much about lending and even common rules of banking and who do not have the art of reading the credit worthiness of a customer  are made Branch Head and officers who do not have capacity to lead a group of workers are made Regional Head.

And so on ………………………….


This refers to Story of one CM who died during meeting with his bosses. This person (CM) has physically collapsed but lacs of officers are already leading life as if they are dead or they die every day, they have lost their self esteem, they remain in stress all the time, they are victim of several critical diseases, they know and they are constrained only to speak sir, yes sir ,ji sir, ha sir, sir sir, yes sir yes sir -----. Boss says ""go to moon by scooti" yes sir I have one bicycle with me I will tomorrow go to moon by it, no problem sir. Boss says, NPA should not rise, ;;;;;;;yes sir it will not rise, customer repay or not , NPA will not rise, --------. Boss says deposit should rise by 40% at least, ----------------yes sir I will increase the same by 60%................Boss says, stop sun rising tomorrow”-----, yes sir I will stop sun rising by hook or by crook, boss says auditors should not write any advese remarks in audit report-----yes sir I will manage auditors too, boss says he will visit the branch --------------o.k. sir one five star hotel is booked, ten best car will await you on airport to receive you and hundreds of flower bouqets will welcome you...........WWW will be made available , no need to worry about performance, bosses have to preach sermon , everyone has to say yes , not to raise any eye brow or any question even if there is no staff or required infra structure to support the branch head in  achievement of the goal or  the mssion preached by the boss.

 Inspite of all these yesmanism, situation is going from bad to worse. So called Star performing banks and so called star performing bank officials are getting all credit for manipulated improvement in data game but the underlying truth is getting exposed gradually.

It is fortunate or unfortunate that media people or investors in general or SEBI officials or CBI people do not understand the intricacies of NPA and they are bound to believe what appears in published balance sheet. Officials in MOF or in RBI do not have much time to spare to look into reality or do not have much courage to accept bitter truth underlying apparent health of bank or they are unwilling to accept the truth in their mutual interest.

Thousands of officers in banks are forced to face the music of their bosses .Suspended officer or dismissed officer or officer who died during meeting are happier than those officers who posted in critical places, who are humiliated in meetings, who are forced to work under the leadership of juniors and who are to work all seven days and fifteen hours a day in bank at the cost of their family life, their social life and their own physical and mental health. It is pity that they are not in a position even to lodge their protest because some of their colleagues who pretend to be their friends and  who have got before time promotion by dint of flattery and bribery  stop them doing so. Union Leaders and top executive are two sides of same coin.

 I am unable to understand the s use of their salary or salary hike or hike in some allowances. Officers who love money and materialistic world die every moment and specially those who are seniors. Junior officers have at least option to resign from bank and go for other job opportunities. Officers who have devoted their one or two or even three decades in bank do not have courage to speak truth in fear of transfer or in fear of added humiliation. In brief they are not interested to open Pandora’s Box in their already stressed, painful and pitiable life.

Most of the officers become happy even on petty rise in their allowances. They cannot visualize their dark future when banks will not be in a position even to pay their normal salary and accumulated Provident Fund or Pension under the pressure of bad debts and when government will tell the bank to revise pay only when their profitability is above certain unachievable benchmark set by Government of India.

As such we are not to mourn death of chief manager who died during business plan meeting in a bank but to  mourn for officer community who appear to be physiclly alive but actually whose position is worse than a dead person.Physical death occurs once in life but mental and spiritual death take place every moment in the life of officers . Officers community face Death everyday in public sector banks. More or less, same is the position of top ranked officer when they face ministers and politicians of the country. In brief officers in bank is a dead community and they are said to be  protected by Leaders of Officers Associations who are Awtars of i.e. incarnation of  Yamdoot .