The banking agenda | Business Standard Editorials

The banking agenda | Business Standard Editorials

The quick recap of  what brought banking system in general and PSBs
particularly to the present predicament and the possible remedial measures
recapturing the outcome of the ‘Gyan
have been well brought out here. Beyond promises, what the
clientele of the Indian banking system will be interested would be to know how
fast and how best the lost health of the financial system is restored.

Even the Gyan Sangam was not very keen to go
deeper into the structural and HR-related issues of both public sector and
private banks. As RBI Governor once said, issues like NPAs piling up for
genuine reasons can be tackled. Provided, systems are in place to prudently
manage the operations and to prevent leakages attributable to external reasons.

The immediate need is
infusion of talent and ensuring continuity at the top level and sending down
the line the message that banks will be allowed to do business without
directions from political leadership to deviate from extant rules of the game.

The message from top
officials of finance ministry at the side-lines of Gyan Sangam was loud and clear when the  Secretary from the finance ministry told that
executives of banks need not any more live in fear of ‘calls from Delhi’ when
they take commercial decisions on sanctioning loans.

Hopefully, the present
churning will help Indian banking system emerge stronger with more
specialisation in areas where focus on specialisation is a must(e.g. handling
operations abroad and providing adequate rural credit) and improving outreach
by availing the opportunity now available to extend areas of operation and
starting new types of institutions to cater to different needs of clientele.

M G Warrier,




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