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.

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

RBI Deputy Governor

I salute RBI deputy governor Mr. K C Chakravorty , in charge of banking supervision has openly expressed doubt on integrity of CMD and ED of public sector banks. He asked for more consistency in financial reporting of banks. He said yesterday that financial reporting should not be as per minds of bank ‘s chairman . When Bank chairmen change profit tends to fall. Mr. Chakravorty has substantiated his observation by citing example of few banks like SBI, Bank of Baroda .Bank of India and so on. He further said that the issue s not standardization of reporting system but to examine the integrity of information need in financial reporting.

I salute the editor of the valued Newspapers who have given prominent place for such news in edition of 7^th June 2011. I am at least not astonished to read the views of RBI deputy governor because I have been writing similar views since long. It is true that views of laymen like me are not published. Since RBI deputy governor has expressed doubt on integrity of CMD of banks, the esteemed newspaper thought it fit publish the same on front page. Anyway I am pleased that there are some few people sitting at top posts who at least realize the bitter truth of corrupt system prevalent in banking sector. I am happy that RBI governor has pointed out the accusing finger towards chief of public sector banks. If he dares to look into ugly shape of various branches of top ranked banks, he will find that the position of branches , at least seven out of ten branches is much more stinking and dangerous for survival of the bank.

I suggest RBI deputy governor to take stern action against a few CMD of top banks who failed to maintain sanctity of financial reporting , who played fraud with system , who manipulated balance sheet, who indulged in bulk financing to increase credit deposit ratio, who indulged in window dressing in deposits, who did not make adequate provisions for pension and gratuity, who willfully sanctioned huge credit to unscrupulous corporate houses, who promoted bribe led lending by giving verbal and telephonic instruction to his subordinate General Managers and Deputy General Managers, who promoted the culture of hiding bad assets and thus who postponed recovery action on bad borrowers and punitive action against corrupt subordinates officials who in writing recommended sanction of loans to bad borrowers, who promoted bad culture in recruitment , promotion and posting of officers, who gave out of turn promotion to corrupt officers to promote bribe culture, who sidelined good officers or used good officers to clean the branches spoilt by flatterer bad officers, who promoted fraud culture in reporting of financial reporting, who by verbal orders instructed field functionaries to play fraud with CBS system and conceal bad loans to avoid provision for bad loans and to inflate profit etc.

RBI governor has to demonstrate his good intention by taking stern punitive action against Chairman of such banks whose financial reporting has not only tarnished the image of that bank and regulating agencies but also cheated the investors who believed on financial results and put money in shares of such banks. Chief of such banks whose action has caused huge loss to the bank in subsequent years must be brought to task even if he or she is retired from services .

I would like to mention here that every CMD and ED of each bank has a few, not all, general managers around him whose work is to flatter the boss, earn bribe through various ways. Collect gifts from his subordinate Deputy General Manager, assistant general managers while sanctioning loans to such bad businessmen who can afford giving big amount of bribe .It is necessary to point out here that such top ranked officers used phone call to get their evil work done These general managers share such ill earned money with ED and CMD in various ways. It is open secret that any GM, DGM or AGM or any executive cannot dream of becoming ED or CMD of a bank until he or she spends 25 to 50 lacs of rupees in getting the support of various members of interview panel who are empowered to select the person for the post of EC and CMD of a bank in public sector. When corruption is unavoidable at top post it is but natural this corrupt culture percolate the down the line.

Regional Head or Zonal head of a bank has liberty to pick and choose officers of his or her choice for posting at various bribe-potential branches, he has the power to whimsically promote an officer to higher scale or reject an officer in promotion process, he has the power to sideline honest officers to remote places when there is chances of such officers raising voice against corrupt activities of regional head. In such environment it is but natural that officers tend to become number one flatterer to his boss .Every officer in bank knows very well that if flatters to his boss and share his ill earned money (earned through bribe) honestly with his boss, gives costly gifts to his boss and his family and if he extends red carpet welcome to his boss during his visit to the branch, his promotion and good posting is guaranteed. On the contrary he also knows very well that performance is not the weapon which can ensure elevation in career. This is why flattery and bribery culture is spread in Public sector banks like cancer.

It is not an exaggeration to say that just like CMD and ED of a bank each Regional Head or Zonal Head or Circle Head has a few Branch manager say five out of ten who have got Doctor degree in art of earning bribe in sanctioning of loans, in contractual work, in supply work, in recruitment, posting and promotion of staff and in all financial transactions. Such corrupt branch managers and senior officials are master in art of speaking and toeing the line of bosses and extending all unwarranted services to even family members of Regional Head. These junior level officers earn money through lending and purchase deposit from government officials. If a branch manager is ready to pay a few thousands and a few lac to government officers he can get deposit in crores of rupees. When deposit increases he can sanction loans and earn bribe without any objection from controlling offices, vigilance officers and auditors. Because such corrupt officers know the art of managing Chartered Accountants, Internal Auditors, RBI inspectors, CBI officials, vigilance officers and all who are potential danger to his corrupt deals.

It is not that financial reporting of a bank changes after the change of CMD or Ed of a bank. True fact is that fate of most branches changes when head of branch is changed. Bad advances sanctioned by such corrupt officers are not treated as Non Performing Asset as long as he remains posted in that branch or as long as regional head of the branch who is also beneficiary of bribe directly or indirectly is changed. Financial report of such branch changes after change of branch manager. This is why NPA reported by such branches exhibits quantum jump in ratio when corrupt team of officials are transferred to other states. Even then team of corrupt officers sitting at central offices try their level best to protect such corrupt officers and leave no stone unturned to close the files against such corrupt officers containing serious charges of lapses and corruption against erring officers Rather they choose some level junior officers to clean the malady accumulated by corrupt officers and ultimately such junior officers are made scapegoat .This is the culture of public sector banks.

It is not therefore surprising that quantity and ratio of NPA in each bank has been rising every quarter. Profitability of every bank is at stake in the hands of such crooked officers who are holding top posts. There are numerous branches in each bank where NPA percentage is more than 20 percentage to more than 50 percentage of total advances of that branch. Heads of banks are saving their image by resorting to bulk financing at the fag end of each year or by selling their NPA to other financial institution or AMCs. How long such manipulation in financial data will help in keeping bank alive, only God knows.

But I fully agree with the views of RBI deputy governor that financial reporting changes after change of Chairman of that bank. I simply add that bad health of a branch is also visible only when head of the branch changes. It has to be kept in mind that financial report of any bank is nothing but sum total of financial report of its branches. As such when integrity of financial report of a bank is doubtful , it gives the undeniable message that financial report of its branches are doubtful and hence need thorough and inspection and investigation.

Need of the hour as such is to punish the person who promoted bad culture, who indulged in bad lending in banks and who caused huge loss to the bank directly or indirectly even if he or she is retired and at the same time bring sidelined officers back into mainstream to provide safety to ailing bank as soon as possible.

www.callforjustice.in

How to identify and punish Bad Bankers

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/pension-liabilities-force-jp-morgan-to-cut-price-targets-of-psu-banks-by-10/articleshow/8687902.cms

http://articles.economictimes.indiatimes.com/2011-04-09/news/29400706_1_gratuity-liability-gratuity-act-bank-auditors

It has been reported several times to RBI, Banking Division, IBA, Finance Minister, Prime Minister in particular and Government of India in general that chief of public sector banks are not making adequate provisions for towards pension and gratuity payable to their retiring and retired employees .There are instances when management of some banks have not even contributed and deposited their contribution equivalent to PF contribution recovered from their employees , either PF optees or for Pension optees. Unfortunately government and all responsible authorities have thought it fit to turn blind their blind eyes and deaf ears towards all factual reporting made by expert and true bankers. Even bad assets are certified as good assets in collusion with team of Chartered Accountants.

It is ironical that whenever poor health of any bank is exposed, misdeeds of top ranked officers are exposed , lack of monitoring and non fixing of staff accountability come to picture the stalwarts of banks put the onus of ill health of bank on global recession, inflation, or rise in interest rate. They never try to accept the real reason of malady rampant in banking industry. Culture of flattery and bribery, practice of pick and choose policy in promotion and posting are the root causes of growing sickness in public sector banks. Incompetent and inefficient judiciary add fuel to fire ,fail to protect the respect and dignity of good and devoted officers and ultimately fail to prevent corrupt officers getting elevation year after even though they are the master of corruption.

This is why the accumulated burden of bad assets hidden below the face of balance sheet has ballooned to uncontrollable position and now getting punctured in gradual way. Due to vested interest of top ranked official and corrupt chief of various banks health of banks has suffered continuous erosion. It is worthwhile to mention here that when chief of SBI got retired in the recent past ,the misdeeds of that bank have came out to some extent through their annual result. If loans upto Rs.50.00 lacs are also classified as per RBI norms honestly and through CBS system there is no doubt that SBI will face sharp erosion in share value and face critical capital crisis .Similarly when chief of other banks who committed large scale fraud with the system are revealed only when they get retirement or they are transferred to other banks

In the same way bribe led lending done by corrupt top officials by giving verbal and telephonic advice to field functionaries is not declared bad assets even if the same is bad as long as the concerned top ranked officer of that bank is given a safe exit or some junior rank officers are made scapegoat or related the files are closed. Manipulation in Balance Sheet and concealment of cancerous disease in the banking system cannot protect banks from probable eruption of crisis in near future.

Root cause of Bad health of Bank

http://www.thehindubusinessline.com/industry-and-economy/banking/article2026797.ece

Position of SBI will worsen if true picture of bad assets is exposed by CBI or AG office honestly. I have written several letters during last three years in this regard but government has turned deaf ears and blind eyes to all public comments because all top officials are birds of same feather. Every corrupt officer tries to protect and safeguard other corrupt officers.

SBI share was an attraction for investors in stock market and best choice for investment experts. But false image does not last long. Financial result has exposed partially the bad shape and critically ill health of SBI in particular and public sector banks in general. Position of other nationalized banks and state run cooperative banks is much more dangerous.

Ministers are also beneficiaries of bank lending directly or indirectly . Parliamentarians use and enjoy public sector banks to extend various loans facilities to their friends, relatives and party supporters.They misuse their powers to extend various relief to loan defaulters who are their own kith and kin. IN this way misdeeds of corrupt bankers specially that of CMD, Ed, GMs and DGMs is also shielded by ministers.

Everyone knows that judiciary is defunct in India and hence judiciary is comfortably used to perpetuate reign of injustice and reign of loot. Powers delegated to these top officials to pick and choose officers as per their whims and that too in the name of merit is used to promote corrupt culture and give award to corrupt subordinates. It is therefore difficult to imagine of any reformation until policy of Human Resource Development is truly framed and executed for real development of human resources.

www.callforjustice.in

Customer is God

Every Organization, every office and all public sector departments invite views and suggestions from public for improvement in their service and for satisfaction and delightment of their customers, workers and consumers. But Common men in general are not happy with services of government departments and with style of functioning of government employees. Because there are in fact none in government offices who really realize the pain of common men .On the contrary all are in fact bent upon making money by unfair means to become wealthy in shortest time period.

Is there any serious reader of views and suggestions posted on the forum of Planning Commission or that of any organization or any department?

Is there anyone who seriously act upon views and suggestions received through Emails provided on the website of their organizations and offices?

I think none is interested to know the ground reality. Flatterers are too many surrounding VIP and it is they who form the line of action and who pave the way for perpetuating the corrupt system of cheating common men in the name of reformation.

May I help you; write to me your views, customers support cell, customer service centers, Grievance redressal Cell are some tools used to befool people of India , to continue malpractices and to continue the reign of injustice.

No sincere efforts have ever been taken to strengthen judiciary by providing with quality manpower in adequate numbers so that pendency of cases in various courts as also delay in disposal of court cases may be avoided. This is why CBI or CVC or any agency set up to control corruption fail to achieve the set goal. Files of corrupt officials and corrupt politicians are either closed or lost or burnt or postponed for decades under pressure of some VIP or the other.

VIP and powerful persons do not want that anyone in the country should raise voice against evil works of rulers, politicians and corrupt administrative officers or judges.

VIP and powerful people do not want that anyone in the country should get success in any office , in any court or even in media in raising voice against injustice and get success in awarding punishment to real culprits

Top ranked officers and politicians in all government offices and in all government departments make such a management and plan such a strategy that adequate manpower and infrastructure is willfully not provided to office of vigilance, office of inquiry , office of audit and inspection, office of anti- corruption cell, Central Bureau of Investigation, CAG etc so that the in charge of such offices fail to discharge his duties honestly and sincerely and that too in shortest time period. Otherwise a corrupt officer is posted as Head in such office who earn money by closing the cases of corrupt officers and corrupt VIP politicians and top corporate guns.

All departmental heads hatch conspiracy in such a way that team of corrupt officers surrounding him are not punished.
www.callforjustice.in