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