Are PSU Bank Really Bad?

Did any private Bank ever turn around any ailing Public Sector Bank?

Did any Public Sector bank failafter taking overprivate banks with heavy losses?

PLEASE GO THROUGH A LETTER TO THE EDITOR, LIVEMlNT.CoM SENT BY Com.TH0MAS FRAN CO

To

Views@livemint.com


The Editorial of your paper dated 3rd May 2017, the article of Mr. Tamal on 2nd May 2017 and another article today by Mr. Manas are outrageous.  If you want to show any semblance of neutrality expected of a newspaper kindly publish the arguments of us too.  I am sending herewith two press releases and articles which you should publish for a public debate.  Can your writers reply to the following questions without bias?

1.   Could the Govt achieve 28 Crore Jandhan accounts, most of which are unremunerative for bringing financial inclusion to some extent without Public Sector Banks?

2.   Has any Private Sector Bank taken over an ailing Public Sector Bank and turned it around? If the Public Sector Banks could take over 24 ailing Private Sector Banks including Global Trust Bank which had a loss of Rs.1100 Cr, how do you measure efficiency?

3.   Dhanlakshmi Bank Ltd is accumulating losses for the last 4 years.  Why can’t some Private Sector Person take over and turn it around?

4.   All Public Sector Banks have increased Gross Profits.  Net loss is due to NPAs for which the Economy and Govt policies are responsible.  Have you looked at the Report of the Parliamentary Standing Committee on NPAs?  Why you have not asked for implementation of the recommendations?

5.   The Banks Board Bureau brought few people working in Private Sector to head Public Sector Banks.  Have they performed any miracles?

6.   How can Mr. Tamal write about performing last rites without looking at the social goals performed by the Public Sector which have brought relief to millions of Indians?

7.   Don’t your authors know that just around 2000 A/cs are responsible for the major NPA and if Govt really wants, it can take action which will turn around all these Banks?

8.   Have you ever calculated the total dividend received by RBI and the Govt from Public Sector Banks and compared the same?  Have you looked at the total amount of taxes paid to the Govt? If so publish the details.

9.   Ask the authors to read the RBI discussion papers released on 11.08.2010, 27.08.2013 & RBI Report 2010 which have talked about inefficiency of the Private Banks and suggested to avoid Corporate houses starting Banks.  Do these authors think that RBI functionaries before Dr. Urjit Patel & Dr. Viral Acharya did not have any knowledge or vision?

10.                Are the representatives of the RBI & Finance Ministry in the Boards of Public Sector banks responsible for the loans approved by them while they were in the boards including Dr. Patel? Why they are not questioned by you!

We demand a healthy debate on the issue and not cynical comments without looking at the reality.


D. Thomas Franco Rajendra Dev
General Secretary
All India Bank Officers’ Confederation


Also Read My following Blog which is of 8th Fab 2015. Click on following link

Link to Are Public Sector Bank Really So Bad?

Perform or Perish


Are Bankers Really LAZY?



No power on earth can stop PS banks moving from bad to worst in coming days and years until they (government ) strike at the root of all sickness and overhaul the entire banking system including Human Resource related policies and actions. Until they focus on wrong causes of sickness they cannot  dignose the sickness in proper and successful manner. They plead wrongly, they furnish wrong reasons for sickness , they diagnose wrongly and hence they fail to curb growing sickness in PS banks .

UPA Government for last ten years allowed open loot of banks  in the name of reformation either in Loan Melas or Loan waivers. They distributed bank funds in loans as if it was their paternal property , they exploited banks for political gain and they allowed banks to keep mum on bad assets. Now there is no doubt that banks are sitting on NPA bomb and slowly banks are accepting risk involved in rising of bad debts . They are therefore asking or say begging  Government for capital infusion to comply International Basel Norms of Capital adequacy. And since government is also suffering from financial crisis, they have no alternative than to advice banks to sell the  bad assets or good equity. They can deny wage hike to staff to compensate the damage caused by previous corrupt bankers and politicians in nexus with bad borrowers.

My Article Dated 10 Dec 2014