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

It was a rare occasion, where the Prime Minister attended the bankers’ meet along with the Finance Minister, the Governor of Reserve Bank of India and the top officials of the Finance Ministry.

The deliberations of the two-day meet were focused. The outcome has been positive in directing the banking sector to improve its operational mechanism to respond to the changing aspirations of the masses, without sacrificing efficiency.

 

Reaching out to the unreached...

Providing easy accessibility to banking services for the poor continued to be the major thrust area. Banks have travelled miles since the launching of the National Mission for Financial Inclusion in August last year, under the Pradhan Mantri Jan-Dhan Yojana. It appears that banks have collectively opened 10.63 crore new basic savings bank accounts.  Nearly 78 percent of these accounts are having zero balance of deposits, while 2.30 crore accounts are having a total deposit of Rs.8369 crore. According to Census 2011, the percentage of households availing banking services was 58.7 and it has now risen to 98 percent. With this remarkable achievement, banks must now ensure that the accounts with zero balance do not slip into dormant accounts.


Curtailing non-performing assets (NPA)

The rise in NPAs is a cause for concern. According to the Reserve Bank of India, the gross NPA has increased to 4.5 per cent and net NPA has gone up to 2.5 per cent of the total advances as on September 2014. Banks have been directed to strengthen their risk management apparatus to receive early warning signals. The government is planning to make laws relating to recovery of dues more stringent by amending the SARFAESI Act. Laws pertaining to debt recovery tribunals (DRT) are also expected to be amended to effectively deal with bad loans and willful defaulters.

 

Maintaining autonomy of banks

Political interference in the public sector banks’ operations has been an issue which could not be eliminated so far. This is reflected in the nomination of directors in the banks’ boards also. The Prime Minister has assured bankers that there would not be any interference by the PMO. It is highly desirable to include in the board, experts in financial management and even retired bank executives of proven track record, instead of persons owing allegiance to political parties.

It was decided to leave the decision of bank mergers to the banks themselves: no bank merger would be initiated by the government. Merger is not a desirable strategy at this stage as it is bound to dilute the amalgamated banks’ interest in intensifying their recovery drives.  Also the mere merger of banks is not going to make the public sector banks competitive, so long as they continue to carry less remunerative business components.

 

Improving the human resources

Banking sector employs over a million. But for their participation, it could not have reached out to over 150 crore households across India. So far no thought has been devoted to making them the shareholders of banks. As the Government of India is planning to reduce its shareholding in the public sector banks, bank staff may be encouraged to become shareholders. When the wage revision is being negotiated, the staff may be advised to invest at least 10 per cent of the enhanced wages in their own banks’ shares. The officers and workmen are represented by their elected leaders as directors in the banks. It is time the banks’ unions consider the feasibility of investing in the banks’ shares. n

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com