Despite several steps taken by Government of India and Reserve bank of India during last five to ten years , they have miserably failed to stop rise in bad debts in banks. Though GOI and RBI adopted many so-called reformative policies and gave maximum freedom to public sector banks , they completely failed to ensure good health of PS banks. It is all because all efforts are directed in wrong direction. They have never tried to understand the root cause of growing sickness .
After all why only PS banks in particular and PSUs in general are unable to perform and why they always fail to keep good health is a million dollar question which top ministers and top officials should ponder over to arrive at a fittest solution which can ensure best health of public sector undertakings including banks. They have to revisit all political, administrative, financial , Human resource , legal and other relevant policies to ensure good health of not only PSUs but employees working there.Unfortunately, the team of flatterers which surrounds top ministers and top officials are prescribing wrong medicine to cure sickness of banks and PSUs in general. This is why no improvement in health of any bank is visible and most of PSUs including BSNL, Indian airlines, power generating companies, power distributing companies are suffering from various diseases,.
Prime reason is that Human work force is not loyal to their organisation and bitter truth is that an honest and sincere worker cannot survive with respect and dignity if he does not involve himself in art of flattery and bribery. Management of banks have failed to create loyalty and attachment to organisation in the minds of staff. Unless and until this culture of flattery and bribery is changed and stopped , good performers cannot give their best and bad performers will continue to rein and rule over organisations they serve.
The culture will change only when politicians who rule the country change their culture and attitude towards good workers . They change policies and rule of game every year for betterment but the fact is that situation moves always from bad to worse. Because rules are altered to accommodate flatterers and not performers. There is nepotism and favouritism at all levels.
NPA touches Rs.6 lakh crore-The Hindu
Bad loans: PAC to send questionnaire to banks-Times of India-20th July 2015KOCHI: In an attempt to tackle growing bad loan menace in banks, the Public Accounts Committee (PAC) of the Parliament will send questionnaire to nationalised banks within a week's time, said K V Thomas, chairman of PAC.
"We had the first interaction with the banks, and on the basis of that, we will formulate the questions to IDBI and other nationalised banks. The banks will get 15 days' time to respond to it and we will scrutinise it, which will take one month," said Thomas.
It is estimated that country's public sector banks account for nearly Rs 2.55 lakh crore of bad loans, while the banks in the private sector account for Rs 31,461 crore.
"There are arguments that huge amounts are given to infrastructure development, like coal mining. Unless and until those projects complete on time, the repayment of the money won't be possible. This is what we are analysing now," Thomas said.
Towards the end of FY15, State Bank of India, one of the major banks hit by bad loans, registered a gross NPA of Rs 56,725.34 crore and net NPA of Rs 27,590.58 crore. During the same period, Punjab National Bank had gross NPA of Rs 25,694.86 crore and Net NPA of Rs 15,396.50 crore.
Similarly, IDBI Bank had a gross NPA of Rs 12,684.97 crore and net NPA of Rs 5,992.52 crore. Bank of Baroda had Rs 16,261.45 crore gross NPA and Rs 8,069.49 crore net NPA at the end of FY15.
CBI to beef up capability to check bank frauds-Hindu Business Line