Monday, March 4, 2013

Dangerous Trend In Public Sector Banks

  • Growth in Deposit and Advances is falling down but Growth In Bad Asset is going up
  • Provision on Bad assets is going up but net Margin is falling down
  • Capital of banks is facing erosion but -Basle III stipulates higher Capital
  • Interest rate on Short Term Deposits is going up   but Interest on Long term deposit is falling down
  • Advances to Farmers and small traders is falling down   but  advances for long term project like infrastructure or for Electricity boards is going up.
  • Retail loans for Micro and Small enterprises is not rising but for High value loan to corporate is going up
  • Pressure for recovery of bad loans is mounting up in banks   but Due to global recession repayment capacity of borrowers is cut short
  • Demand for bank job is increasing   but Job satisfaction of bank employees is going from highest to lowest level
  • Sitting hours in banks is going up   but    working hours is coming down
  • Bank employees sit late to please boss but do not like to do perform because of growing unhappiness
  • Stress and strain is going up and expectation of management from bank employees is going up but work culture is getting polluted,
  • Firing by bosses is increasing   but health of banks employees is falling down
  • Branch expansion is increasing fastly     but recruitment of new staff is moving slowly
  • Banks are less interested in lending to needy persons but more interested to sell insurance policies
  •  Outsiders are optimistic but insider employees are very much pessimistic about safety, survival and growth of bank.
  • Seniors are working under juniors and inexperienced employees are bosses of experienced employees
  •  Promotion has become faster in state run banks but job satisfaction and level of performance as per need of elevated post is moving from bad to worse to worst
  • Union leaders are going in the hands of management, Industrial relation is peaceful but love for the institute and desire to work for the bank is getting erosion.
  •  Knowledgeable employees fear in sharing their knowledge with weak bosses And Bosses fire those employees who are best in performance and love those who are non performers b ut number one flatterer.
  • Use of technology in banks is going up and up but banking knowledge of bank staff is falling down and down
  • Banks are more and more dependent on technology but probability of fraud is going up and up
  • Technology is getting more and more value in banks but value of manpower and value of customers coming to banks is getting dilute day by day. Employees of banks want to keep customers away from bank’s branches but dream of rise in business too.
  • Banks are promoting alternate channel more and more, customers are going far and far from bank
  •  Ministers and RBI officials dictate policies but bankers fail to follow the same and when bankers demand support of government machinaries in recovery of loan from defaulters ,RBI and MOF appears helpless
  •  Global banks are falling and failing but domestic banks aspire to go and run to become global, Indian banks are unable to recover domestic bad debts but sure of recovery of overseas bad debts which is growing faster.
  • Work Load Has been increasing in all branches but manpower is reducing slowly and gradually.
  • Business is increasing but quality of business is getting eroded due to manpower shortage and also due to poor quality and poor knowledge of  bank employees 

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