Most banks have identified training gaps in the areas of credit/risk management, agriculture programmes, and foreign exchange, according to Reserve Bank of India Executive Director G. Gopalakrishna. These areas require an equal measure of knowledge of rules, practices and specialised skills for appraisals, on the one hand, and an awareness of markets, on the other, he said while inaugurating the Nitte Institute of Banking and Finance at Nitte University in Mangalore. ( Read below Given two news items)
If we look at the observations made by RBI ED at said meeting,it becomes clear that about three fourth of employees are covered by majority of public sector banks every year under some training progamme or the other to develop their skill in their area of work. Still ED RBI says that the training intervention in banks will have to be geared towards orienting, facilitating and encouraging more employees to take up the positions in such areas as credit assessment, credit monitoring and risk management to manage the competitive rush.
It is remarkable to note here that hardly ten percent of work force are required to perform on credit related matters and it is only they who need knowledge on credit skills and risk management and audit and inspection work which from time to time assess and ascertain the negligence in credit assessment and monitoring. Ninety percent of residual workforce are engaged in non-credit works. If even after imparting training to officers dealing with credit , risk and audit , such officers are unable to protect banks from credit risk and when there are hundreds of instances of negligence and lack of monitoring and due diligence at pre sanction and post sanction level.
It proves that they are either not properly trained or the person who train credit dealing officers are themselves having poor knowledge on credit and risk management or they are not able to properly convey , communicate and inculcate good knowledge in those who undergo such training programme. There is no seriousness either on trainer or in trainees. In such position it will be foolish and wondering in dreamland to expect improvement in loan processing and monitoring and to expect fall in ratio of bad assets . As such expenses incurred on training goes in enjoying training as paid LTC by those who are said to be covered under training.
It also cast aspersion on recruitment methods and policies of the bank. It will not be incorrect to say that even in recruitment , top officials of the bank and that of IBPS play foul game and do not keep interest of the bank in priority number one . This is why several bank employees are not fit for bank job even after imparting training them time and again. It also proves that employees in bank are not handled with love and affection but fired and forced to work under fear which lastly spoils the enthusiasm and loyalty to bank.
It is also true that kith and kin of bank officials and that of top government officials are recruited in higher post and pay higher salary . In this process they talk of merit but act only to accommodate their own person with higher pay.
It also cast aspersion on recruitment methods and policies of the bank. It will not be incorrect to say that even in recruitment , top officials of the bank and that of IBPS play foul game and do not keep interest of the bank in priority number one . This is why several bank employees are not fit for bank job even after imparting training them time and again. It also proves that employees in bank are not handled with love and affection but fired and forced to work under fear which lastly spoils the enthusiasm and loyalty to bank.
It is also true that kith and kin of bank officials and that of top government officials are recruited in higher post and pay higher salary . In this process they talk of merit but act only to accommodate their own person with higher pay.
It is also possible that the person who undergoes training for a particular job is not fit for the subject or not inclined to work on that particular job and hence he waste time in training centers and cause loss of good money on bad persons. Training in banks is not imparted on potential of employees but to improve their data and prepare a good statistic on training vis-a–vis total number of staff. A person whose interest to work is in credit department is given assignment of non credit job and vice versa. This is why it is found that Bank management of a particular bank is awarded for imparting more and more number of its employees on the basis of statistic they feed to RBI and surprisingly the same bank at later stage is found to be pioneer in adding Non Performing assets in the bank.
To make it more clear, I would like to say that in such bank more and more officers who are considered as star performer from their framework of assessment( framework theoretically is always the best but the practical assessment is entirely different , who are well trained and skilled and who are considered for promotion all the time are found to be involved in fraud, negligent lending , bribe based lending and complete failure in monitoring of assets they sanction during their tenure .It may be due to moral deficiencies either in him or in his bosses.
It is undeniably a fact that loans sanctioned by such star performers become bad in a year or two and the successor is punished for his lapses. Similarly Head of a bank called as CMD or Branch head called as Branch Manager who inculcate bad culture in loaning sanctioning processes but who by hook or by crook wins the game of achievement of targets by manipulation and ill methods is awarded and on the contrary the succeeding CMD or succeeding Branch Head is punished for rise in bad assets and rise in fraud related cases. In brief this culture kills motivation for good lending and paves the way for bad lending accompanied by flattery and bribing to bosses. Undoubtedly in such position coverage of training proves futile and wasted expenditure. All is well only because it happens in public sector bank and because of the fact that regulators of banks are equally public servant, all of same corrupt culture (I talk of average trend , not of a few exceptionally few good guys )
Thirdly, it happens in bank that the person who is weak in performance at branch level is selected for the post of trainer or facilitator in training centers. It also happens in bank that the person who failed to perform in branches are made auditors. It also happens in bank that officers who are found to involved in negligent loaning, bribe based loaning, loaning on fake deeds , loaning without ensuring creation of assets by loan and who created more and more bad assets due to ill-motivated loaning are made vigilance officer to detect cases of fraud and corruption.It happens in bank in only that a person who has got expertise in credit is given the task of achieving target for insurance business.
There is a proverb in English that when protectors are destructors, none can stop complete damage and complete loss. ( kauwe se khet ki rakhwali ho rahi hai sarkari bank me and sarkar office me). And the most unfortunate part is that birds of same feather are sitting at majority of top post in almost all offices including at regulating , inspecting and administrative offices.
How it is therefore possible to improve the health of public sector bank is a big question.
Until the Human Resource is given due weight in right and in true spirit as happens usually in private banks, it is almost impossible to bring about real change in mindset of working officers. In PS banks majority of officers work to please their bosses whereas in private bank they work in the interest of the bank they work for.
Until the Human Resource is given due weight in right and in true spirit as happens usually in private banks, it is almost impossible to bring about real change in mindset of working officers. In PS banks majority of officers work to please their bosses whereas in private bank they work in the interest of the bank they work for.
Management of public sector banks use to shed crocodile tears on paucity of senior bank employees and when they retire from the bank in bulk. But it is also true that they never gave weight to such senior employees when they were in bank and when they performed better than flatterers . Rather bank management promoted young who were perfect Yes-man and this is why these banks are now suffering of ill health. Most of the excuses made by top of these banks for rise in bad assets and for rise in fraud are to misguide their mentor ministers and nothing else. They will have to introspect and understand the ground reality and act as perfect professional as their counterpart in private sector do.
Public sector banks lagging in risk appraisal skills-Business Standard 11.011.2013-Business Line
RBI ED stresses on need for training by external experts, institutions
MANGALORE, NOV. 10:
Most banks have identified training gaps in the areas of credit/risk management, agriculture programmes, and foreign exchange, according to Reserve Bank of India Executive Director G. Gopalakrishna.
These areas require an equal measure of knowledge of rules, practices and specialised skills for appraisals, on the one hand, and an awareness of markets, on the other, he said while inaugurating the Nitte Institute of Banking and Finance at Nitte University in Mangalore.
Banks, he said, require training by external experts and institutions in these areas.
Stating that the training needs cannot be uniform across the banking industry, as each bank has a unique structural make-up of its own with a different set of aspirations, he said: “What applies to a public sector bank may not be applicable for a different skill set present, say, in foreign banks and new generation private sector banks.” Public sector banks have shortage of skills in credit appraisal and risk management, whereas new generation private sector banks and foreign banks have better skills in these areas, he said.
The training intervention in banks will have to be geared towards orienting, facilitating and encouraging more employees to take up positions in such areas to manage the competitive rush, Gopalakrishna said.
Stressing the need for the institution to follow a regimen of analysing training needs, he said this would help ascertain specific training requirements and address them specifically.
TRAINING PROGRAMMES
On an average, 60-65 per cent of bank employees are covered every year under some training programme or the other. While some banks have been able to train 85-90 per cent of their workforce, a few have been able to train not more than 40 per cent of their staff in a given year, he said.
Training is also required for senior employees, including board-level executives of the bank, in terms of accountability, responsiveness, and competence. These factors call for appropriate training interventions to keep them up-to-date.
It will be necessary to train independent directors on the boards on aspects such as their powers and responsibility towards the stakeholders and expectations from them that transform with changing times. This will help them perform their role well and without any interference, he said.
Staff retirement: Banks will face severe operational risks
MANGALORE, NOV. 10:
Retirement of the existing pool of employees this decade has intensified the war for talent in the banking industry, according to S. R. Bansal, Chairman and Managing Director of Corporation Bank.
Speaking at the inauguration of the Nitte Institute of Banking and Finance at Nitte University in Mangalore, he said more than half of the staff pool in the banking industry - at about 58 per cent - would retire during 2010-2020.
Stating that the retirement is quite intense at the level of the top executives, he said 82 per cent of top executives in the banking industry will retire during the period.
It means a leadership gap at the top management level, and banks are likely to face severe operational risks.
He said the retirement of the experienced and committed employees would make way for the inexperienced, young and enthusiastic new ones.
Added to this, the entry of new banks will increase the competition further. He suggested that institutes such as Nitte Institute of Banking and Finance focus on identifying the needs of bankers and developing contemporary contents for the banking industry.
The Nitte Institute of Banking and Finance has trained 444 probationary officers of Corporation Bank. It has also conducted one train-the-trainer programme for the bank, he said.
N. Vinay Hegde, Chancellor of Nitte University, and M.S. Moodithaya, Director of the Nitte Institute of Banking and Finance, spoke on the occasion.
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