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What is the priority – mergers or NPA reduction? From lazy banking to easy banking New bank licences, at last... Grows Bigger Lacklustre credit expansion Payment banks have arrived Hesitancy in announcing year-end results Holy or unholy? Aadhaar, niraadhaar and banking Monetary policy continues to adopt dis-inflationary path Why any time money? Financial inclusion vs unclaimed deposits Bottomlines shrink, bad loans rise... Fund healthcare clinics in villages... Managing NPAs... Indian customers are tech savvy New capitals of Migrant banks A development bank for BRICS Too big to fail and too small to sail Well-lived... United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Governance in Reverse Gear? All that glitters is not gold... Thirty more cities seek to become SMART Growing volume of stressed assets… Bank deposits account for 46.3 per cent of household savings Cautious and considerate Small finance payment banks... Stage set for Indian ‘avatar’ of foreign banks Small is ‘more’ beautiful Cut in repo rate – lower than expected Ferrying digital banking to Lakshadweep Ernakulam excels... The paradox: clamour for the Goliath and David Growing gainfully Who is the real beneficiary? Cradle of banks to a smart city... Insatiable appetite for credit Greet Lakshmi the banking robot Why priority status? A bank for women, by women The collaboration suite of cyber criminals Targets continue to be ad hoc Good, bad and ugly Mega merger is on Banking in Telangana Just 660 days! Target over-ambitious... Merger mania haunts banks Perhaps small is more beautiful than big! It’s a war on black money, support it. Anytime banking to anywhere banking LVB- A supermarket of financial services How okay are new banks? Nothing much can happen…. Banking overhauling or reorganisation? One down in private sector Needed a Banking Atlas Reaching out: is it slowing down? Small finance banks offer high interest rates Smart banking in smart cities Big bank merger, bigger expectations How ‘secure’ are the secured loans? Emerging crisis A new development bank rising in the east… Another route for achieving financial inclusion Capital base of regional rural banks raised Two banks: their jubilees and performances Rationalised Drop in SLR- sparing lendable resources Banking on Risk Drastic decline in asset quality Reaching the Unreached…
Governance in Reverse Gear?

Public sector banks have come under criticism for their lacklustre performance on the profitability front during FY 2014, attributing to their miserable plight to the absence of effective corporate governance. The mounting volume of non-performing assets is causing concern to both the owner and the regulator. The performance of banks in the private sector, particularly of the new generation, by comparison, has been much better.

There are certain sections of lobbies influencing the policy-makers, which plead for total privatisation of the banking sector. They are drawing inspiration perhaps from one of the wisest rulers of Delhi - Mohammad bin Tugluk - who was said to be quick in reversing his decision at any cost. Though the birth of public sector banks was based on political considerations, over the years they have irreversibly changed the banking map of the country. Rural India finds a place in the banking map today due to their efforts. To cite an example, which private sector bank would have dared to go to Lakshadweep islands? It was a public sector bank, which went there in 1972 and opened nine branches.

The track record of new generation banks of the private sector in entering into rural banking is dismal. Even after two decades’ of operations, only 17 per cent of their branches are located in rural areas, while the whole banking sector has 37 per cent of its branches functioning in rural areas. De-nationalisation of banks, at this stage would denigrate rural development.

Mounting non-performing assets of public sector banks is, no doubt, the most undesirable development. But bank managements alone cannot be blamed for this, since deceleration of economic growth has all pervasive impact on the economy. Slackness in corporate management is the other major factor responsible for this. Total professionalisation of the bank boards is the need of the hour. It is necessary to make a review of the norms stipulated for board-level representations.

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