Wednesday, September 2, 2015

PSBs need change of outlook and enhance efficiency

 The banking is in a mess and the recent   measures of the Government under Indra Dhranush   to reform the public Sector banks cannot be a remedy to make the PSBs perform professionally, viably and rescue the economy from its paralytic condition to say the least. The Governor’s  point   that the time for incrementalism is past and could well allow a potential crisis to morph into an actual one needs to be viewed seriously and actions initiated with right earnest to improve the health of banking which is critically ill and suffering from various weaknesses. right from absence of adequate human resources to financial capital. The reluctance to handle the government schemes like Jan Dhan Jojana emanates from lack of vision on the vast business potential in the offing in different ways and the indifference to such schemes citing non viability and demanding compensation. The problems of PSBs are human resources and the professionalism in handling the business in a competitive environment where payment banks, small business banks and private sector banks are becoming order of the day and are enhancing their presence. The only way for psbs to survive in business is to qualitatively improve its human resources potential and find ways and means to enhance capital, expand business opportunities and handle assets portfolio on  commercial lines and improve profitability by bringing in utmost efficiency in the management of balance sheets.


 Dr T V Gopalakrishnan      .

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