Skip to main content

How the people and their representatives ruined the Indian banking system – 2




Indian banks today are examples of sloth and complacent customer services. They all have good nice businesses. They seldom care for the customer or the client. Private Banks too are not very far behind the government banks in mistreating or looking down upon their so called valuable clients. So how does that kind of psychology happen? Most importantly what’s the role of the people and government in this insensitivity of Banks?
One reason of course could be the United Progressive Alliance’s policies. Led by Dr. Manmohan Singh, it favored loyal party cadres to the posts of bank directors. Like Anusuya Sharma (United Bank of India), Maj Mrs. Krishna Mohini (Punjab and Sind Bank) , Abdul Rashid (United Bank of India) , Praveen Davar (United Bank of India), Vinay Kumar Sorake (Syndicate Bank), KK Sharma (Punjab and Sind Bank), Umesh Kumar Sharma (Punjab and Sind Bank), Paban Singh Ghatowar (United Bank of India), Rani Satish (Union Bank of India), Omen Moyang Deori (Uco Bank), Harcharan Singh Josh ( Punjab and Sind Bank), Shobha Oza (Syndicate Bank), MN Kandaswamy (Indian Overseas Bank) , P C Zoram Sangliana (United Bank of India) and others. The one important qualification that was seen in them was their immense loyalty and hard work they put in for the Congress Party. But does that make them efficient directors too?
In many cases, bank officers have been allegedly pressurized for not auctioning properties of those who did not pay their loans back. Instead they were asked to settle for terms which were unfavorable to the banks. But not many such complaints have come into the public light. However if the NPA figures of the banks are of any measure you can see that there is definitely a system of favors by banks to certain select individuals.
Former cabinet minister Pawan Bansal, a close aide of former PM Singh, himself allegedly, got his Chartered Accountant Sunil Kumar Gupta a directorship of Canara Bank. Interestingly soon he and his family members got loans worth crores of rupees from Canara Bank. Now of course, the issue could be just an ethical one and have no legal basis.  Still it begs the question about how people are encouraging such candidates.  What about their ethics?
Also, the question of shareholder activism arises here. How can any government push a favorite candidate for a job which needs technical expertise? This where there are large number of shareholders. It calls for the accountability of not only the banks and their systems, but also of the public that owns these banks. Obviously, it is this same public which in a way owns the government too.
"The bank has suffered in the past due to reckless lending because of political interference and an obliging management, which resulted in accumulation of highest NPAs in the industry. If the Government wants this bank to survive, the bank should have directors who are not only professionals but also men of integrity and not connected with local politics." – RP Singh, Former CMD Punjab and Sind Bank
Labels:

Comments

Post a Comment

Popular posts from this blog

Does India need communal parties?

I think, it was Tan's post on this blog itself, Republic Day Event, where this question was raised. My answer. YES. we need communal parties even in Independent, Secular India. Now let me take you, back to events before 1947. When India was a colony of the British Empire. The congress party, in its attempt to gain momentum for the independence movement, heavily used Hinduism, an example of which is the famous Ganesh Utsav held in Mumbai every year. Who complains? No one. But at that time, due to various policies of the congress, Muslims started feeling alienated. Jinnah, in these times, got stubborn over the need of Pakistan and he did find a lot of supporters. Congress, up till late 1940's never got bothered by it. And why should we? Who complains? No one. But there were repercussions. The way people were butchered and slaughtered during that brief time when India got partitioned, was even worse than a civil war scenario. All in the name of religion. And there indeed was cr...
40 comments
Read more

Some Information Related to Guest Blogging

Many of us don't know about guest blogging. So, what is guest blogging?   When one blogger posts his content to another blogger's site it is termed as guest post/guest blog. This method can be used to increase traffic on our sites. Mainly new bloggers use this technique of blogging so that their blogs get promoted and they can build-up the relationship with the audience and this technique also helps them increase the traffic on their site.  If you have started a new blog, your blog might have trouble in reaching up with a wide range of audience, even if you have strong content to post. So, you can publish that content to someone else’s blog whose blog is already reputed so that people can read out your content and if they like your post than bingo!!! You grab audience attention and this lead to increase the number of audiences on your site. But make sure that the concept is simple, and you are writing the content according to the blogger’s requirement. The...
Read more

Cutting people off isn’t strength—It is a trauma response

Your ability to cut people off and self-isolate is not a skill you should be proud of—It is a trauma response Summary Cutting people off and self-isolating may feel like a protective shield, but it is often rooted in unresolved or unhealed trauma and an inability to depend on others. While these behaviors seem like self-preservation, they end up reinforcing isolation and blocking meaningful connections. Confronting these patterns, seeking therapy, and nurturing supportive relationships can help break this unhealthy cycle. Plus, a simple act like planting a jasmine plant can symbolise the start of your journey towards emotional healing. Why do we cut people off and isolate? If you’re someone who prides themselves on “cutting people off” or keeping a tight circle, you might believe it’s a skill—a way to protect yourself from betrayal, hurt, or unnecessary drama. I get it. I’ve been there, too. But here’s the thing: this ability to isolate yourself is not as empowering as it may seem. In...
Post a Comment
Read more