Nationalised Banks to get level playing field to compete with private banks
It was in 1969 that 14 private banks were nationalised and so much of social engineering has taken place in the last 36 years that now the accent is on providing the public sector banks a level playing field to compete with their private sector cousins. In spite of government shackles, it's a miracle that the PSU banks are able to survive and rather do well. State Bank of India known for its imperial ways (after all it was once the Imperial Bank) is now a very customer friendly bank and most of the banks are fully computerised and offer quality service comparable to the best in the private sector. The so called efficiency of the private banks is a big facade, behind which ugly experiences are hidden. The Public Sector Banks have to work under severe social and state obligations and the fact is that in spite of all these hurdles, they have done fairly well. The Government has realised that they should be given a level playing field with their private sector counterparts who have no social obligations. So now these Banks will be allowed freedom of action in the following areas:-
- Pursue new lines of business as part of overall business strategy.
- Make suitable acquisitions of companies or businesses, close/merge unviable branches, open overseas offices, set up subsidiaries and exit a line of business.
- Decide all Human Resource issues relating to the Bank, including staffing pattern, recruitment, placement, transfer, training, promotions, pensions etc.
- Prescribe standards for categorization of branches, based on volume of business and other relevant factors.
- Prescribe essential academic qualifications, minimum qualification standards and modalities of promotion/ recruitment to various categories.
- Undertake visits to foreign countries to interact with investors, depositors and other stakeholders.
- Lay down policy of accountability and responsibility of Bank officials.
Private Banks hire beautiful girls to sell their products and have no fear of CBI. The CMD of a nationalised bank gets half the salary of a junior executive in a private bank and can be hauled up before a CBI inspector! Our Public Sector Banks are as good as the private ones if not better. Give them a chance.