Saturday, July 23, 2011

Transfer Culture in PS Banks

Public sector banks are passing through worst days because these banks are managed by team of corrupt officials. There is growing sickness in Public sector banks due to the fact that corrupt top officials are selected as ED or CMD by MOF and due to the fact that protectors of officers called as trader union leaders are also hand in glove with corrupt executives of the banks. Corrupt ED and CMD then keep corrupt GM and DGM around them to promote culture of flattery and bribery. As a result GM os these banks also adopt the same culture of flattery and bribery. This is why an officer become DGM, CM,AGM, or other senior level or middle management officers only when he or she has some God father at Head office or controlling offices or he or she has good relation with members of Interview panel members.Trade Union Leaders are nothing but other side of same mutilated coin which represent character of management of bank.

Munsi Prem Chand ji wrote in his books that

"Jab Rakchak hi Bhakchak ho jaye to Vinash nishchit Hai" .

Since only corrupt officers are promoted to executive rank, decisions taken at upper level and policy framed by such corrupt officers are opposite to each other. These officers never bother for the health of the bank but only think for growth in their promotion, their posting, personal wealth and personal bank balance and this is why NPA in PSBs is fastly growing and growing without any break.

The most disheartening bitter truth is that officers who indulge in bribe based bad lending is promoted and the officer who recover the bad advances is made scapegoat. None can therefore save these sick banks. Mass transfer to far places may satisfy the ego of corrupt executive but cannot improve the health of sick banks; they may add fuel to fire and nothing else.

These clever executives know how to befool MOF by submitting lame excuses for their lapses. They talk of global recession or inflation to hide their ill motivated decisions and conceal their misdeeds.

One should therefore never expect consistent and respectful growth in career in such banks without involving oneself in evil work without and supporting evil works of bosses. Flattery and bribery is the only key to success. Attrition rate is therefore much higher in PSBs even though private banks are paying less than PSBs to low level or middle level officers. I am unable to visualize any benefit for banks if scale I officers are transferred from Hindi belt to Non Hindi belt or vice versa.

Man power planning is in hands of money power makers and hence quality of manpower and adequate quantity at all branches is non imaginable proposition. Corrupt officers are given enough manpower to enable him to earn money through illegal means and share with bosses whereas on the contrary officers who believes in safe lending and lending without any greed of money as bribe is always subjected to shortage of manpower so that his image is tarnished and he is either punished or thrown in critical remote places.

Banks suffered in the past due to large scale expansion of branches in eighties and nineties and hence for few years top bankers and politicians started closing unviable branches. Loss making branches were closed or converted into satellite branches. Government started suggesting merger and acquisition of banks. But unfortunately the same government is now pleading for opening of more and more branches in remote villages even if there is no possibility of profit. Same government is now talking of giving license to new entrepreneurs. No consistency policy. Banks are managed by whimsical politicians and corrupt officials.

People may say me as pessimistic but I am not over optimistic too particularly when I know the field level reality. I do not believe in financial data published by various banks and certificates issued by corrupt officials of RBI or corrupt ministers because I know ground level bitter truth.
www.callforjustice.in

1 comment:

majji js murthy said...

I fully agree with Mr.Dhanendra Jains observations on the functioning of PS Banks which are deteriorating and showing downward trend since past nearly a decade. This is more prominent in case of some banks and particularly if you observe the fall is more drastic in banks where there are extensions in the normal tenure of CMDs of the banks. When Finance Ministry guidelines are very clear that tenure of CMDs is 5 years or upto reaching age of 60 years, which ever is earlier, it is disturbing to note that the concerned ministry is violating their own guidelines and giving extensions to some CMDs even though there are many CMDs in waiting to take over charge as CMDs. From this it is construed that a mafia type organisations are working in the Finance Ministry who work like brokers for appointment of CMDs and extension of their normal period and also they decide about whom to allot which bank. It is difficult not to believe that these appointments and extensions are done without monitory transactions or commitment for further bribing by the beneficiary if their terms are extended. It is this commitment to meet the financial benefits given to the mafia members the CMDs are making and breaking certain time tested organiational set up in banks they are breaking and again remaking the set up involving hundreds of crores of avoidable expenditure. In one of the public sector banks, they appointed a consultancy group who suggested two tier system in the Bank instead of prevailing three tier system. They closed Field General Managers Offices and surrendered all their FGMOs premises, transfering all the staff of FGMOs to different places incurring hundreds of crores of expenditure. Within less than one year again under the suggestion of the same consultancy group they have reopened the FGMOs incurring further expenditure. We have read in History in our childhood about Md. Bin Tughlaq about shifting from Delhi to Daulatabad and again from Daulatabad to Delhi, during which process more than half the population perished. It is the same thing that has happened in one of the Public Sector Banks resulting in deterioration of services, adversely effecting the profitability of the bank. It is strange that the concerned ministry did not even question the bank as to why they have done this and who is accountable for the expenditure and deterioration of services. The ministry instead of taking action against the officials responsible for such acts has given extension to the CMD of the bank which clearly indicates that they are also party to the loot. Unless the concerned ministry takes action against these culprits, we continue to believe that the officials in the ministry are directly involved in all the scams and irregularities committed by the CMDs because of their extension of their tenures or their allotment as CMDs of banks. There are many more violations that some PS Banks are commiting, some of which I have written to the Finance Secretary and also to the Finance Minister. Unfortunately it appears that they prefer to see the other way as probably these irregularities / violations are done with their blessings.