Some of Chiefs of Public Sector Banks have again approached Ministry of Finance seeking permission to restart illegal campus recruitment to improve health of banks which has already been banned by Supreme Court in the year 2013..
Bitter truth is that this is so called merit oriented policy for campus recruitmet and that for promotion to already working officers which have damaged working culture of each PSU bank framed by each bank in the name of merit during last three decades of such mismanagement. Now Chiefs of these banks are once again advocating policy of campus recruitment and suggesting amendment in Constitution to overrule ruling of Supreme Court on the issue of campus recruitment.
Obviously top bankers are suggesting such a course of action to cure sickness of banks which course have already made banks sick .
Medicine prescribed by Chiefs of Banks will prove suicidal and spoil further future of already sick banks if Sri Vinod Rai, head of newly formed Banks Board Bureau BBB and Finance Minister Sri Arun Jaitley succumb to pressure exerted by some of Chiefs of banks.
Medicine prescribed by Chiefs of Banks will prove suicidal and spoil further future of already sick banks if Sri Vinod Rai, head of newly formed Banks Board Bureau BBB and Finance Minister Sri Arun Jaitley succumb to pressure exerted by some of Chiefs of banks.
In order to hide their mischievous and ill-motivated lending which they resorted to enhance their own fortune during last three decades of freedom they enjoyed and which resulted in so much rise in bad debts , Chiefs of banks are putting blame on HR policy and some other time on high interest rate regime or on economic slowdown. They are doing so obviously to avoid punitive action against them for their evil deeds and wrong actions .There may be genuine reason behind some of stressed assets , but in majority of bad loan accounts, it is purely top officials and politiicans who are totally responsible for growing mess in banks.
Same team of corrupt officials of PSU banks are prescribing wrong medicine of campus recruitment once again to divert the attention of MOF from rising stress assets. For them, an engineer or a MBA or a simple graduate recruited from a campus of their choice will save banks from disaster . For them clerks or officers working in their banks for decades and recruited from all India competition are incompetent. Because they want a free entry door to introduce sons and daughters of their families and to please VIP parents by recruiting their wards directly in banks on higher packages from campuses.
To verify my observations or allgation , CBI officials or a top level committee should be entrusted the task to assess the value added by those officers who had been recruited in the past from campuses in different banks in the name of merit.
Here it will be important to point out that during eighties , Top officials of these banks used to blame seniority based promotion policy for poor growth in banks and the then FM allowed each bank to frame their own merit oriented promotion policy and recruitment policy.
Outcome of so called merit oriented policy gave rise to only flattery and bribery culture and this is why banks in general are now critically ill depsite the fact that the government has provided infusion of capital from time to time to stop disaster in these banks. Top officials of banks rather raped real meritorious officers in the name of merit.
Outcome of so called merit oriented policy gave rise to only flattery and bribery culture and this is why banks in general are now critically ill depsite the fact that the government has provided infusion of capital from time to time to stop disaster in these banks. Top officials of banks rather raped real meritorious officers in the name of merit.
After more than three decades , top officials of banks are again putting blame of their own merit oriented promotion policy which they enforced and used for more than three decades . They may change the bottle of wine to crate confusion in minds of FM or DY FM. But until there is change in their mindset , there is no hope for any improvement of health of PSU banks. Policies had never been as bad in banks , as bad were the persons who executed polices.
If they want real reformation and real transformation of banks from sickness to heathy entity , they will have to re-use the age old tested and attested seniority oriented promotion policy and all India test for recruitment which was in force till seventies. They will have to give value more to working clerk and officers and give value to them for higher posts than to trust freshers recruited from campuses of their choice.
Arbitrary and whimsical promotion based on recommendation of VIPs and similarly arbitrary and whimsical recruitment in higher scales have proved disasterous and they will have to accept this bitter truth sooner or the later. Power corrupt persons and absolute power spoil the organisation to irrepararable extent.
Trade Union leaders must stop the mischievous plan of Chiefs of these banks and approach MOF stopping them in bringing out a bill for constitiutinal amendment empowering banks for campus recruitment. They may give an indefinite strike call after fully explaining the disasterous outcome of wrong policies of campus recruitement and after apprising court ruling in proper way to officials of MOF , FM , BBB and RBI bosses. Any laxity in this regard by trade union leaders may demoralise, demotivate and spoil future of already frustrated and depressed existing employees of banks.
I say so , because MOF has already committed a blunder by appointing persons from private banks as ED and CMD of PSU banks. They may be tempted to accept suggestions related to campus recruitment for junior posts too.
Rather I would like to suggest that officer of same bank should be appointed as ED and CMD of a bank at least for five to ten years so that they may be held accountable for all lapses occured during their tenure. More often than not, ED or CMD of a bank retire after two to three years of their tenure and hence they sanction loans freely without any fear of any penal action against them.
If an officer hold top post of a bank and remains on the same post for five to ten years , loans and advances made by him may be tested , whether they remain standard or turn NPA in two to three years. At least they may be held answerable if loans sanctioned during their tenure turns NPA . As of now, bank officers do not fear of action for their wrong actions because they either get transfer to some other zone or promoted to higher level or get retired. This culture has made them fearless and absolute corrupt in many cases.
I am of strong view that Bank management cannot get suitable talented officers for banks from educational institutes because banking is a service industry which need knowledge and expeience in banking , which need mental ability to read the minds of loan seeker and which need experience to deal with bank customers. There are huge number of talented and experienced officers still available in these banks but they are not flatterer and yesman of their bosses and hence they either do not take part in promotion processes or they are rejected everytime and posted in critical places.
If permission is given to bank management to hire employees directly from campuses, it will open many doors for corruption and there is no doubt that it will fully spoil future of banks.I have no doubt that present pathetic position of public banks is nothing but outcome of flattery based policy for promotions and transfers. Empoyees love and worship their bosses , not their organisation from where they get their bread and butter.
I am of strong view that Bank management cannot get suitable talented officers for banks from educational institutes because banking is a service industry which need knowledge and expeience in banking , which need mental ability to read the minds of loan seeker and which need experience to deal with bank customers. There are huge number of talented and experienced officers still available in these banks but they are not flatterer and yesman of their bosses and hence they either do not take part in promotion processes or they are rejected everytime and posted in critical places.
If permission is given to bank management to hire employees directly from campuses, it will open many doors for corruption and there is no doubt that it will fully spoil future of banks.I have no doubt that present pathetic position of public banks is nothing but outcome of flattery based policy for promotions and transfers. Empoyees love and worship their bosses , not their organisation from where they get their bread and butter.
One of readers of this blog adds as follows
Now a days even top universities struggle to achieve 100% placement due to dynamic job environment in software industry . Various Placement Agencies work as broker to attract banks and other big companies in various campuses as per bribe offer they extend .
Even heads of colleges and universities wil try to bribe finance ministry to make Public sector banks come and recruit so that, they can sell university seats in much higher cost promising secure job in banks and government departments in addition to private sector.
State-run banks may hire directly from B-schools -Hindustan Times 25th May 2016
dkj
Public sector banks (PSB) could be allowed to recruit straightaway from the country’s business and engineering schools in a step to reduce acute shortage of staff.
At present, state-owned banks are barred from hiring directly from campuses unlike their private counterparts. But a similar process is already on as specialists are being hired from the private sector on contract.
Campus recruitment is considered a much-needed solution to manpower shortage at a time when state-run banks are looking to get a handle on rising levels of non-performing assets.
The newly launched Bank Board Bureau (BBB) in consultation with the government is likely to announce the roadmap for the new hiring strategy.
This comes after the Bombay high court declared campus recruitments by PSBs as “non est in law” in 2013. A claim of non est factum refers to a contract that was signed by mistake. The Supreme Court dismissed the appeal and thereafter the government issued a circular in 2014 to all state-owned banks to stop campus recruitments.
“There is shortage of talent and these banks are expected to compete with their private sector peers. The issue has been discussed, we are looking into the legal aspects ... Banks must be free to recruit the best talent from wherever,” said a bank chairman, who did not wish to be named.
Finance minister Arun Jaitley said on March 5 after the second Gyan Sangam, a two-day retreat for public sector bank chiefs, that provisions must be made to allow state lenders to recruit directly from B-schools.
Legal experts had countered that the government have to present a “solid ground” to challenge the court order.
“The order can be revisited only on the ground that it is required for larger public interest … Any such move by the Centre would be subject to judicial scrutiny,” said Manoj Kumar, the managing partner of Hammurabi and Solomon, a legal services firm.
Link to News Published In HIndustan Times
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