Wednesday, June 19, 2013

FM to meet PSU banks Executives on 26th

Will the FM advise the banks to go in 1) for more mobilisation of deposits and increase the SB rate of interest to at least 5%. 2) for reduction of borrowed funds and reduce the cost of funds3) for reduction of NIM to less than 3%. 4) for reduction of NPAs other than those caused by economic slow down 5) for strict adherence of regulatory requirements in  banks own and in the interests of the economy. The tendency to question the regulatory requirements at the cost of the economy and banks' own discipline needs to be curbed.6) for making Financial Inclusion a reality and not to produce bogus statistics to please the authorities any more 7) for understanding  the spirit behind KYC norms to  avoid harassing of genuine customers particularly small deposit customers 8) for Improving the customer service at the counters and ensuring that staff having smiling face and good behaviour only are allowed to manage the counters.Arrogance of staff keep away the customers is a reality but not brought out by customers to keep their dignity and decency  9) for better ALM management as it leaves much to be desired to reduce the cost of funds and avoid periodical liquidity constraints.

Dr.T.V.Gopalakrishnan
 

2 comments:

Suran said...
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Suran said...

Wonderful list, there is nothing much one could add to this, while I would have preferred( now that the meet is scheduled on 3 july 2013) a 1) mention of the adequacy of staffing in rural branches as the urban branches seem to be overstaffed, 2) giving the banks the autonomy to recruit without any Govt interference??, and of course freedom, governance with accountability! 3) Recognising the importance of SHG as an effective financial inclusion tool rather than tokenism through BCs in the FI endeavour 4) finding a synergy between the FI and SHG streams 5) curtailing the KCC balloons and melas as a measure to reach the agri targets and aiming at investment credit in agri sector.
cheers,
suran