The PSU Banks are a great place to deposit one's money and not worry about losing anything. The owner makes sure that frauds happen, capital is depleted and then replenished without fail. And I have faith in the ability of the government of India's printing presses.
I started my formal working life with a nationalised bank. I survived three years there. A couple of years more and I would have been part of the system. Happy to not work and happy with mediocrity. And perhaps a witness ( I do not think I had it in me to be a party to it) to rogue activity around me.
Unions have killed the banks. One year, one increment. What work you do, whether you do or not, is not relevant. Ambition and merit are snuffed out. Ambition to reach the top only if you enjoy the fruits of corruption and the trappings of power.
Have you spotted any IIMs or IIT passed guys spend their life in a PSU Bank? Would love to meet such people.
So there is no point in ranting at their NPAs. They are a poor lot, with no clue about analysis. Forms are filled by the brokers or agents who fix things. For larger well known names, the CEO is just wined and dined or is simply a source to meet targets. And having worked in industry, we have treated PSU banks just as sources for fund based borrowing and nothing more. Inflexibility and their poor decision making ensures that every client with good credentials simply goes to the private sector. Why? Simply because the private sector is more flexible and fast.
PSU Banks are by and large unregulated. If they were, we would not have bad lending. RBI has no clue about banking except issue circulars one after the other on operational issues that they do not understand. Just look at the ATM charges circulars and you will understand. RBI is a wasted entity as far as regulation of banks are concerned.
I started my formal working life with a nationalised bank. I survived three years there. A couple of years more and I would have been part of the system. Happy to not work and happy with mediocrity. And perhaps a witness ( I do not think I had it in me to be a party to it) to rogue activity around me.
Unions have killed the banks. One year, one increment. What work you do, whether you do or not, is not relevant. Ambition and merit are snuffed out. Ambition to reach the top only if you enjoy the fruits of corruption and the trappings of power.
Have you spotted any IIMs or IIT passed guys spend their life in a PSU Bank? Would love to meet such people.
So there is no point in ranting at their NPAs. They are a poor lot, with no clue about analysis. Forms are filled by the brokers or agents who fix things. For larger well known names, the CEO is just wined and dined or is simply a source to meet targets. And having worked in industry, we have treated PSU banks just as sources for fund based borrowing and nothing more. Inflexibility and their poor decision making ensures that every client with good credentials simply goes to the private sector. Why? Simply because the private sector is more flexible and fast.
PSU Banks are by and large unregulated. If they were, we would not have bad lending. RBI has no clue about banking except issue circulars one after the other on operational issues that they do not understand. Just look at the ATM charges circulars and you will understand. RBI is a wasted entity as far as regulation of banks are concerned.
3 comments:
Superb analysis...
completely true. these banks are the hot beds of inefficiency and corruption. they are going to bring down the economy one day. RBI is completely wrong in hoping they will provide inclusive banking. A visit to a PSU bank is like getting a root canal done. They need to be slowly made insignificant in size.
Thanks, Ms Sharmila.
And to you too, Abhay. It is sad that banking has been reduced to a joke by the government.
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