Overhauling of banking system could be next

It is not going to materialise in two or three months. It is a long drawn process. There is a lot of work which has to be done, said Banks Board Bureau chief Vinod Rai

GN Bureau | January 6, 2017


#Banks   #Banking   #Vinod Rai   #ASSOCHAM  

Over a period of time, banks may go in for mergers, consolidation and lots of thinking was going into the entire process, said Banks Board Bureau chief Vinod Rai.

“The entire process is being thought of, it is not going to materialise in two or three months, it is a long drawn process, there is a lot of work which has to be done and once the roadmap is ready and hopefully in the next two to three years it will be rolled out,” said Rai.

Delivering the ASSOCHAM Foundation Day Lecture on Thursday, Rai shared his perspective on demonetization and said that there is no harm in trying to cleanse the system and there are various ways to do it and demonetisation was one very effective way.

“Any attempt to cleanse the economy is a very noble attempt and we should lend our energies in ensuring that process of cleansing takes place,” said Rai.

“It is far too early for us to say it is a success or not a success,” he added.

He said that the Banks Board Bureau is working on a fairly attractive compensation package including elements of bonus, employee stock ownership plans (ESOPs), non-monetary perks and others at all management levels as part of corrective steps to ensure that best of professionals are recruited for public sector banks (PSBs).

“In some ways the compensation package of these public sector institutions needs to be improved, maybe we are not able to do much with fixed part of compensation package but variable part we certainly are looking into it and we are hopeful that by next financial year we will be able to introduce a far more attractive package.”

Rai said that though the Corporate Debt Restructuring Cell was created with very noble intentions in early 2000s but later it found itself sagging with humongous amount of stressed assets in which there was no way it could manage those resources.

He said that there have been innumerable cases where project reports were inflated, balance sheets manipulated and submitted, funds siphoned off and others.

Comments

 

Other News

India ramps efforts as COVID-19 cases rise

As COVID -19 cases continue to rise amid a 21-day lockdown, the centre and the states are proactively taking measures to provide aid to the underprivileged and the needy during this unprecedented situation.         By Sunday morning, India had registered 27

Diplomacy in the time of Covid-19

In the thick of battle with the deadly coronavirus, India on March announced a 21-day lockdown till April 14 in its bid to control the spread of virus which has so far led to 10 people’s death and over 600 others falling sick across the country. As per experts, India, which is in the second stage of

Life hacks for Lockdown blues

As the nation battles the Coronavirus outbreak, a billion-plus population is confined at home in the 21-day lockdown, and this is leading to mental health concerns. “It is a tough time and we need to be stable to get thorough. People must rationalise their irrational thoughts without

Doctors, others continue to face vigilantism

Scare following the outbreak of Covid-19 has led some people to turn to vigilantism, harassing people at the frontline of fighting the disease and keeping the country running amid the lockdown. Earlier this week, the medical associations had made representations before home minister Amit Sha

Covid19, lockdown, legal profession: Grief, justice & contingency plans!

Sixteenth March at Hammurabi & Solomon Partners was a usual Monday at work with colleagues starting the week on a turbo-mode. But this Monday was different. It had something unusual about it. A sense of uncertainty kept struggling to look ahead on how the days ahead would flow. Despite



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter