“While we seek more autonomy for the banks, we from the industry must also set certain standards for us for ensuring clean and best banking and business practices
GN Bureau | February 19, 2018
The Punjab National Bank's fraudulent transactions worth Rs 11,300 crore should act as a strong trigger for the government for reducing its stake to less than 50 percent in the banks which should then be allowed to work on the lines of private sector lenders with a full sense of accountability to their shareholders protecting interest of depositors, the Assocham said.
"The PSU banks, ironically, are slipping from one crisis to the other and there is a limit the government can keep bailing them out at the cost of taxpayers' money, even if it is the principal shareholder in these lenders,” it said.
“The top banking positions are treated as extension of a government job and the senior most management spend bulk of their quality time, receiving and implementing directions from the bureaucrats even for innocuous issues. In the process, the core banking functions, including all important risk mitigation and management, take a back seat. The problem has become more grave with the banking adopting to new technologies which can prove both boon and bane, depending on how effectively they are implemented,” an official statement from Assocham read.
Once the government equity in the banks is reduced below 50 percent, there would be much more autonomy along with accountability and responsibility of the senior management. The boards should then be truly taking the policy decisions while the CEOs would run the banks with full authority, coupled with the commensurate responsibility, instead of looking towards the bureaucrats for directions.
Assocham general secretary DS Rawat said, “There is an onus on India Inc as well. There are two sides of a coin. If one side represents the bank managements, the other side, which involve the borrowers, represents India Inc. Any unsavoury incident leaves both sides of the coin smudged. It is time the industry also did some introspection. While we seek more autonomy for the banks, we from the industry must also set certain standards for us for ensuring clean and best banking and business practices.”
He called upon the Reserve Bank of India to take a lead and engage with the industry in finding ways to do a clean business in the entire financial sector, be it the public sector or private sector banks or even the non-banking finance companies.
The Collected Stories of Saadat Hasan Manto: Volume 1: Bombay and Poona Translated by Nasreen Rehman Aleph Book Company, 548 pages, Rs 999 There are writers, there are writers’ writers, and then there are readers’ writers. Saadat Hasan Mant
Meet Promila Krishna, 39, Lalita Nayak, 40, Parbati Gadba, 42, Sanadei Dhuruwa, 39, and Nabita Barika, 41, of Kundra block in Odisha’s Koraput district. Except for Promila who is a matriculate, others haven’t attended school beyond the elementary level. However, while introducing themselves to
Michelle Obama once said, “No country can ever truly flourish if it stifles the potential of its women and deprives itself of the contributions of half of its citizens.” That should be so obvious, but it is not, and countries keep depriving themselves of the contributions of half of their popul
The Congress is scheduled to hold a Chintan Shivir (meaning, ‘introspection camp’) from May 13th to 15th in Udaipur and it has identified six specific areas for introspection. These are 1. Political 2. Social Justice and Empowerment 3. Economy 4. Organization 5. Farmers and Agriculture and 6. Y
India has the largest share of the deprived and the marginalized among the 1.3 billion-plus, out of the 7.9 billion-plus inhabitants of the world, who are said to be living without shelter or basic amenities required for human existence. Clearly, we need to introspect as to why despite being the fourth or
At a time when climate change, preservation of nature and ecological balance and reducing fertilizers and chemicals in agriculture and food are drawing huge attention, a forest village in Maharashtra is taking strides to become a model ‘Madhache Gaon’ (honey village). The aim is to increase the