RBI's policy is on expected lines and there is a clear message for banks that they have to have a drastic change in their approach to transmit the monetary policy changes for their own benefit and for the benefit of the economy. Banks' survival depends on their professional apprach to intermediate the savings of the society and deploy them profitably through investments, credit and asset generation. The fact that deposits and credit have not been picking up and their investments in government securities at more than the required level only indicate the banks pursue lazy banking.The accummulation of NPAs and investments of their resources in assets other than Government securities at lesser than even perhaps the base rates only indicate that banks are not run on professional lines and this has been more than highlighted in RBI's latest policy. Depositors are not happy, borrowers are not happy, the RBI and the Government are not happy the way the banks are run these days reflect poorly on the management of banks and this is the right time for them to introspect and take some concrete measures.The whole land scape of banking has changed but the management remains where they were situation needs a faster change is what is all about the recent credit policy.
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