Public Sector Unit (PSU - India) Banks
are the back bone for financial inclusion of people in rural areas of India.
Thanks to Vijay Mallaya, Nirav Modi etc. PSU banks are under strain and stress.
Article by B Yerram Raju on
Lessons learnt from bank nationalization (Business Line newspaper) touches some
points which are worth noting:
Current generation of bankers
“The current generation of bankers working more on systems than on
knowledge hardly seem to realise the rough patch Indian banking is going
through today.”
The above is also true because
many executives joining the work force use Software (ERP) and do not know the effect
of a transaction. They believe System does that automatically and is well
taken care of during the sign offs. Hence, System completely overtakes the
knowledge of the user.
In the context of System many believe the Enterprise Resource Planning (ERP) System is the beast running the operations of the institutions. As usual human beings do not talk / interact with beast they do what it states.
Below quote rightly summarizes it (replace “animals” with “System”):
“One thing to remember is to talk to the animals. If you do, they will talk back to you. But if you don’t talk to the animals, they won’t talk back to you, then you won’t understand, and when you don’t understand you will fear and when you fear you will destroy the animals, and if you destroy the animals, you will destroy yourself.”
Chef Dan George
Chef Dan George
Demonetisation
“Demonetisation exposed the infrastructural inadequacies in the banking
system. Banks, to retain profits, started fleecing the customers with high
service charges.”
Banking focus
“Today, banks do more non-banking business with hefty commissions.”
Excellent recommendation
“Make sure banks focus on their core activities and not sell insurance
policies, mutual funds and other third party products that could also include
laddus and medallions at pilgrim centres.”
References:
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