An open appeal to Prime Minister Mr Narendra Modi
My opinion is against merger and consolidation of Bank at this stage when almost all banks are exposed and suffering due to unabated and consistent increase in bad loans called as Non Performing Assets . Gross NPA has crossed 10 percent in all bank's. Bankers are busy in recovery of dues from defaulters. Credit offtake is either poorest or the worst quality wise in all bank's either due to dirty politics or due to unskilled banking or due to rampant corruption at all levels or due to bad policies or due to bad management .
Under present framework banks cannot reduce NPA. They can at best write off and enter into compromise settlement with bad borrowers and seek capital infusion from government as they have been doing for last ten years and more.
Quality of manpower is poorest and promotion takes place on basis of flattery. Politicians continue to exploit banks for vote bank. This culture is very old and deep rooted. As such NPA cannot be expected to fall, rather it will continue its uptrend .
Quality of manpower is poorest and promotion takes place on basis of flattery. Politicians continue to exploit banks for vote bank. This culture is very old and deep rooted. As such NPA cannot be expected to fall, rather it will continue its uptrend .
Anyway government is bent upon execution of its merger plan. It is choice of the government. I am helpless. I cannot stop it but put before you my little suggestions.
I will simply say that growth has already suffered erosion partly due to demonetisation and partly due to GST. Bankers at field level have been avoiding fresh sanction of loan. Once you sanction merger plan, all bank's will face confusion and chaos. Officers working in banks will get one big excuse to avoid lending . Without credit growth one cannot dream of GDP growth.
If GDP growth comes down further , opponents of BJP, voters and media will get additional opportunities to critise a good government and pull government down. Please avoid at least for few quarters so that impact of demonetisation and GST become zero and economic condition improve to pre- demonetization level.
Merger of banks will spoil banking at least for a year. All cases of recovery of loan in courts will be delayed further by a year or two. It will simply add fuel to fire. Banks will save some expenses by closing surplus branches but spend more in introducing new stationary and new software.
In place of merger, you can frame uniform loan policy and interest rate structure for all bank's and branches as if they all are government bank . After merger only name will change, attitude and culture will not change.
Merger will rather shield all corrupt officials and politicians and cause dangerous erosion in quality of lending and quality of management. Top officials will get an easy excuse for all bad lending gone by them and all hidden NPA will surface . Rating of banks will come down sharply.
PS: 06.11. 2017
Now I am reproducing an article published in LiveMint today.
Do the banks know what is project financing? No; they have been financing working capital. As universal banks, they started financing long-term projects with short-term money. The average maturity of deposits is far lower than the gestation period of most projects. And, they have no knowledge of project appraisal and risk management.
Link to LiveMint, click here
27.11.2017
Today I received response from PMO which is disheartened
PS: 06.11. 2017
Now I am reproducing an article published in LiveMint today.
Do the banks know what is project financing? No; they have been financing working capital. As universal banks, they started financing long-term projects with short-term money. The average maturity of deposits is far lower than the gestation period of most projects. And, they have no knowledge of project appraisal and risk management.
Link to LiveMint, click here
27.11.2017
Today I received response from PMO which is disheartened
PORTAL
Centralized Public Grievance Redress and Monitoring System (CPGRAMS)
Brought to you by Department of Administrative Reforms & Public Grievances
Government of India
Grievance Status
| Print || Logout |
| : | PMOPG/E/2017/0581186 | |
| Name Of Complainant | : | Danendra Kumar Jain |
| Date of Receipt | : | 05 Nov 2017 |
| Received by | : | Prime Ministers Office |
| Forwarded to | : | Department of Financial Services (Banking Division) |
| Contact Address | : | Room No. 12-B, 3rd Floor,Jeevan Deep Building |
| Building, Sansad Marg | ||
| New Delhi110001 | ||
| Contact Number | : | 23742100 |
| Grievance Description | : | My opinion is against merger and consolidation of Bank at this stage when almost all banks are exposed and suffering due to unabated Rae in bad loans . Gross NPA has crossed 10 percent in all bank's. Bankers are busy in recovery of dues from defaulters. Credit offtake is either poorest or the worst quality wise in all bank's either due to dirty politics or due to unskilled banking or due to rampant corruption at all levels . Under present framework banks cannot reduce NPA. They can write off and seek capital infusion from government as they have been doing for last ten years and more. Quality of manpower is poorest and promotion takes place on basis of flattery. Politicians continue to exploit banks for vote bank. This culture is very old and deep rooted. As such NPA cannot be expected to fall, rather it will continue its uptrend . Anyway government is bent upon execution of its merger plan. It is your choice. But I will simply say that growth has already suffered erosion partly due to demonetisation and partly due yo GST. Bankers at field level avoiding fresh sanction of loan. Once you sanction merger plan, all bank's will face confusion and chaos. Officers working in banks will get one big excuse to avoid lending . Without credit growth one cannot dream of GDP growth. If GDP growth comes down further , opponents of BJP, voters and media will get additional opportunities to critise a good government and pull government down. Please avoid at least for few quarters so that impact of demonetisation and GST become zero and economic condition improve. Merger of banks will spoil banking at least for a year. All cases of recovery of loan in courts will be delayed further by a year or two. It will simply add fuel to fire. In place of merger, you can frame uniform loan policy and uniform interest rate structure for all bank's and branches as if they all are government bank . After merger only name will change, attitude and culture will not change. |
| Current Status | : | CASE CLOSED |
| Your Feedback | : |
Poor
|
| Date of Action | : | 27 Nov 2017 |
| Details | : | Grievance is a request / suggestion / query/general observation. This portal is only for redressal of specific grievances against banks and other non-banking financial institutions. As such case closed at our end. |
*my feedback submitted with poor remarks is as below.
This portal has a place for suggestions and feedback in drop down menu...
Your website is titled as Interact with Prime Minister...........
Our PM in all his speeches ask for public opinion on national issues..he gladly invites suggestions from common men. He says so in Man ki Bat.
It is astonishing how you say that this portal is only for submission of specific complaint against a bank or FI. It appears you are not serious on motives of creation of such portal. Your response shows you are trying to dispose off all complains as it used to be disposed during UPA. You may create record in disposal rate achieved in dispossl of public grievances. But it looks ridiculous. We expect something better under Modi led and BJP led NDA government.
I do not mean to say that my suggestion or opinion is of supreme quality . But when you invite opinion you must at least respect your own policy.
This is not the first time, you have closed many cases in the past too, not only that of suggestions but also that of complaints. You have greater value for bank or FI or your decisions and no respect for opinion of complaints. This shows that this portal is only to bed lol common men.
PMO will earn good image only when you start thinking out of box way.
With due regards, I make an humble appeal to you to give due weightage to what common men writes to you using this portal.
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