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