Yesterday i received a call from an young banker ( in his thirties) whom i assess as an eternally optimistic and fundamentally socialist individual in any situation. But he was so pertubed due to despair and despodency prevalent among the colleagues of his peer group due to negative thoughts about their organisation and about their future in banking industry. All my young friends are aware that the PSB,s are facing double whammy now a days, the first is stressed assets and another is additional capital requirement to meet Basel iii norms. The health of banking industry is the function of performance of primary sector i.e. Industrial and agriculrural growth. Due to various factors as international slow down, cheaper import from our neighbouring country our mfg sector is under pressure, our precious resources like coal, iron ore, alumina etc are not explored due to some intrinsic problems. This all have resulted in stalling of projects and stressed asset in our books. But one may argue then why pvt banks are not facing the problem. There are a few reasons. 1. Their portfolio is tilted towards trading finances. 2. They are nimble footed ( they know when to shed which customer, it rarely happen in PSB,s, only good customer migrate to Pvt banks). 3. They have got a single objective of profit. 4. Not as involved as PSB,s in social babking. By saying all these i am trying to reassure our young feiends that this is not the time to panic but to behave like a true proffesional. A proffesionals skill are being tested at the time of stress. Once economy starts performing our stress assets will give dividend. As far as capital is concerned our owner will take care of us and that is being planned. One innovative way we may ask for support of say Rs500/- in capital account for each PMJDY account. One thing we learnt from begining that PSB,s are not only with profit motive but has social objectives also. So, please dont feel low but be true to your proffesion and remain happy. Dusclaimer: This is my personal opinion addressed to my young friends.
Posted on: Sun, 21 Dec 2014 13:45:36 +0000
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