Saturday, November 19, 2011

Treat Customers as GOD and staff as DOG

When politics is good and political leaders are good, there is no doubt that governance is good and administration is good. If politics is dirty and political leaders are dishonest, bankers will also be dishonest and corrupt and in such position there is no fun in talking of ideals on this forum.

Politics and banks are inter-related to each other. All top leaders are indulged in flattery of political leaders. Will u please agree on bitter truth and ground reality? Junior officers are busy more in keeping their bosses happy than in keeping their safe and making it stronger and shining like Diamond.

After all politicians dictate their whims and fancies on big bosses and then big bosses follow the same line of action and prevail upon their subordinates, rightly or wrongly.

If ministers ask for branch expansion, top executives of banks become mad in opening new branches and cause huge losses.

When ministers ask for waiver of loan and compromise, they make a mockery of waiver and compromise and cause much huge harm to recovery culture.

When there is talk of loan melas in political circle, our bosses become irrational and mad in disbursal of loan. Everywhere madness to become number one in the eyes of ministers, not number one for profitability of bank or welfare of staff. Why?

It will not be an exaggeration to say that PS banks are meant for distribution of government sponsored pension, salaries of government employees. MANREGA payments, opening of no -frill accounts and similar other non productive services. It is willingly or unwillingly, one can answer to oneself. But it is true that good customers are shifting to private banks.

Bank officials are focusing on a few customers who use to offer gifts from time to time. Top executives are busing in polishing top 200 customers. None is bothered of middle class and poor class who contribute retail business. If one makes a thorough analysis of customer profiles he will find that number of person having deposits less than Rs.15.00 lacs has gone away from PSBs and adopted Private Banks. Who has caused such mismatch? Bulk lending is supported by short term liabilities. Deposits from government department and cash rich PSUs attract most of branch head and regional heads. Why?


Now some of bankers have started debate on Facebook and some of them are using it for marketing bank’s products and policies. Some of them do not like other subjects and hence remove the person from the group who writes other than bank issues. They should know that After all face book is a forum for expression of ideas and exchange of ideas, national or international , personal or social but not at all a forum for flattery to bosses or marketing of a product.

I suggest these over ambitious facebook participants that they should bear with all fair and good views of all from all walks of life and do not concentrate of only business al where. Political views are at least better than non-sensical chatting initiated by some of participants just to pass time. Facebook cannot be used to teach staff and to ensure execution of policies.

Hundreds of circulars are issued form all banks daily containing all policies but bank staff seldom read them , they do not know how to store them for future use .Most of the branches are manned by incompetent persons. They try to do what they are told by their bosses and not what they are ethically and morally supposed to do. They want message in a few lines, in a few words which may explode their mind like nuclear bomb. Face book participants do not like to read even my one page or two page articles, they chat only for chatting purpose. There may be few negligible exceptions to it.

When sons, daughters, brothers and sisters of bank staff are married to that of politicians, they have no option but to talk of politics. Bank staff and bank as a whole is wedded to politics. If you visit office of secretariat of ministers in Delhi or in secretariat of any state government, you will come across a lot of bankers moving from one corner to other. Rest I do not want to explain.

So far as sharing of knowledge is concerned ,banks are not allowed to share confidential policies of any bank on Face book which has gone in the hands of hackers and contents of which is followed by foreign enemies every now and then. None of government department carries out debate and discussion or marketing on Facebook. Why banks only?

I appreciate some of views and concerns expressed on FB by some seem-to-be loyal staff and give full value to it. But I ask them to discover the reason and the person who caused accumulation of malady in banks. Please let me know who has spoilt the banking industry, especially public sector banks.
Why are Banks in general coming out with bad results.
Does it not show that banks and its executive in general are victim of dirty politics going on in the country?

Does it not prove that bankers committed sin in the past and now they are facing the consequences?

Those who committed sin are now preaching sermons to others. Will it be effective?

Why NPA was concealed for last two decades and why not efforts were made so much sincerely in the past to recover the money form defaulters as it is being done now.

I appreciate the apprehension expressed by some of bankers. Due to dirty politics in promotion processes applied by top executive during last one decade, only corrupt officers have gone up and they have left behind a wave of frustration and detachment.

When old and experienced men are discarded and isolated in any bank and new and young boys without any banking ideas are picked up from the market or from among the juniors as per whims of the executives and recruiters, there is no doubt that bottom-line of an organization will become weak. In past, there used to be family culture in bank, now it is government culture: officers do what is need to please the bosses.

When bosses built pressure on lending and non categorization of bad assets as NPA, officers in general were busy in reckless lending and concealing all bad assets.
There is no manpower planning at all in any bank. No honesty and transparency is left in promotions and transfers. Interview gives unlimited powers to accept or reject any staff.

There is mad rush for branch expansion in the name of financial exclusion. Most of the branches do not care for staff because they are constrained to do so due to acute shortage in their branch.

When parent of a child start crying and crying for help only , not rushing to Doctor for appropriate treatment there is no doubt that the child will collapse sooner or later.
Public sector Banks in general are on ventilation and often need government help for capital infusion or for payment to staff, for wage revision, for payment of pension etc.

Now preferred choice of bank is to recruit MBA from colleges and make them scale III and allow existing experience seniors to stink and spoil their life. You can imagine the taste of fruits produced by such polluted trees. An organization cannot prosper where old people are disrespected. Family prospers when Youngers give due respect to elders and when merit is awarded but love is equally distributed.

It is pleasant to understand that banks have now declared all bad assets and now actual work is being done to recover the old dues. Similarly banks have to first accept that they (corrupt bankers ) committed blunder in Human Resource Management and then only they can reverse the process and cure the ailing bank. Top management has to realize that Interview is invariably used to discard good people and accept bad people to serve the malicious goal of the Interviewers.

When top executive person preach sermons for welfare and for extension of best customer service and to delight the customer,they do not think that bank staff are their prime customers and when prime customers are not happy they cannot dream of long lasting relationship, sustainable business and ever yielding advances or rise in CASA or rise in overall business accompanied by rise in profitability and stable PROSPERITY .

When staff are good and happy they will take care of customers and when good customers are respected , Banks has to get desired results without imposition of unrealistic targets and without use of firing in meetings.

5 comments:

sudhakar said...

Sir,

What you said in your blog is 100% correct. Sincere staff has no place in the bank and cannot think about future prospects. When I joined the bank in 1973 there was an atmosphere in the office as a family and now it is only the muscafiers have place. The new recruits have no belongingness or affection for the institution where they work. They are worried about what perks they get and how they will be able to make manipulations in getting the benefits, getting future promotions by buttering and pleasing their bosses.Seniors are left behind and their sincere work has not carried any importance in the bank. Corrupt officers are getting the promotions faster. Sincere officers sometimes have faced problems for no fault of them but for the frauds committed by customers and lost their increments based on the recommendations of thier boss. Whereas, the corrupts have been left scot free and promoted.

It is true and very much evident from the results announced by the bank today. It is heading southwards. Slipped to 7th rank from 5th. Because of policies, sincere borrowers have decided not to repay the loans as they are sure to get the loan waiver or OTS one or the other day. After all whose money it is??? Top brasses are making the policies for their benefits to climb the ladder. MD wants to become Dy. Governor of RBI. ED wants to become MD of another bank. GM wants to be ED and so on.... after all at whose cost??? It is at the cost of sincere officers who never got the promotions or any benefits of their sincerity. But I think it is too late now.

Danendra said...

Undernoted comments are of Majji JS Murthy and the same appeared on Facebook in the group called as Unionbank shining.I have just copied and pasted it here so that people may view it
@MajjiJSMurthy

Union Bank shining or Union Bank burning?
A burning object also shines. Let sane minded officers / staff of the Bank pause for a minute and decide what to do to stop this rot.
At least till recent past we Unionites could proudly say that ours is the only bank which showed continuous profits since inception.
It was also one of the few banks which is free from scams.
But can we say so now?
There are suspected irregularities in recruitment which tend towards scam.
There are people who are selected for recruitment (suspected) without even applying for the post. Our HR policy is one of the most defective policies in the industry.
Whenever they want to transfer an officer out of their way they do so with a comment "due to exigencies" without defining / saying what these exigencies are.
HR Department keeps its officers in the same department for decades together without transfer - again reportedly due to exigencies.
I have the full list of staff and officers who are working in the same place without transfer or change of table for over a decade, even violating CVC guidelines. Whether our Top management takes cognizance of such blatant violations in transfer policy?
Whether our Executive Director who is overlooking the HR department is aware of such violations.?
Similarly in inquiries and proceedings, there are violations in rules. They punish innocent officers for petty mistakes or even without any mistakes, only to protect some corrupt top executives in the bank.
Even our CVO also acts like a rubber stamp/partisan way - at least I can say so of the previous CVO.
I can produce multiple vigilance observations, which were given as an eye wash to protect some and punish some scapegoat in the system.
This only results in demoralizing honest hard working officers from putting their best efforts.
You can see the results of our Bank during the last few quarters.
There is drastic slide in all round performance of the bank - in advances, recoveries etc. This rot can be stopped only when our HRD redefines itself as Human Resources Development and not "Human Resources Destruction".

FROMASHOK said...

Sir what you have posted is absolutely correct.Most of the top executives of public sector banks are corrupt of highest ordeer.Bank officers are forced to become sychopant by senior executives,even they are forced to become correct.Upright and honest officers are treated like dog---ASHOK KUMAR CHOUDHARY

FROMASHOK said...

I MEAN EVEN THEY ARE FORCED TO BECOME CORRUPT---ASHOK KUMAR CHOUDHARY

mrinal jain said...

very true sir i have been blocked from bank of india group...most of the bankers like flattery..many of them are good in it for getting favourable posting....i am celebrating diwali away from home as i didnt get confirm ticket of railway...dont knw whom to blame... railway or the management of the bank who gave me posting 1000 km from my home..