Nothing wrong, but no action on non performers and unfits and continue them till retirement is a burden, similarly to pay DA linked pension is also a big burden. Govt. must get rid off of all these perqs. Save tax payers.
Their NPA is eating away their earnings. Present NPA is generated due to corruption in banks and due to Political black mailing , banks were used by Ruler Politicians as their personnel fiefdom to benefit their men.
It may be opinion of Sri. subramanian opinion but it is correct decision at that time. One should know because of nationalisation only Central and State Governments could introduce their policies succesffully and underprovalaged, rural folks, farmers and small artisans could enter the Banks and had privilege to open and operate the accounts. Even to the extent they could get loans for raising thei standard of living. Sri. subramanian may be economist and chief economic advisor to the Government, he is absolutely wrong, other wise Indian Banking Industry might have been another US, what happend in 2008.
Without going into the past and comment on a decision taken many many years back, the Chief Economic advisor Arvind Subramaniam should focus on the revival/ improvement of current economy of the country. He should learn a lesson from Raghu Raman, Governor of Reserve Bank of India who is believing his business without caring for the people who are in power and concentrate only on his business without trying to please the present government by criticising the decisions of the previous government.
Re: The decision of nationalisation of the bank was wrong
by madhu palli on Jul 22, 2015 10:21 AM
Well said MR. Shah. Banks were nationalised for inducing growth through socialist pattern of economy. Now this brilliant guy comes and stands on the past 65 years of development and says that some ratio is not good in the banking system blah blah... instead of rectifying systems and process which have become weak.
It is not Arvind's brief to rake up the past , as our politicians do. He has no idea of the frauds perpetrated by private banks in his home country the US and how it was the US taxpayer who bailed them out.
He would be more productive if he can work out a scheme to improve existing banks and recapitalise them, before the NDA performance becomes a total mess.
The decisions taken by the then govt. by looking into the prevailing national situation cannot be dubbed as a disastrous one. if the politicians, bureaucracy and the industrialist had the honesty and the national interest in mind country's financial institutions, mega industries(under 5 year plan) could have been a great success and China would not have been a dominating factor as they are today. It is a fact that RBI had kept control on the financial aspect of the country. I am not a supporter of Congress party, but I have been watching the on goings in the country as an alert citizen. It is very easy to criticize when you are in a cozy position. Please remember that India has not reached this stage with in a year's time. Not at all.
Re: Nationalization of Banks
by Amit on Jul 22, 2015 07:36 AM
china all major banks are owned by govt..still they built the worlds biggest economy.......that exposes this American frauud
Re: Nationalization of Banks
by on Jul 23, 2015 11:21 AM
Aptly said that, 'nationalisation of banks' decision was taken considering the situation prevailed at that time. It is the industrialists questionable integrity colluded with some of the unethical politicians brought disrepute to the PSU Banks and FIs. Let the Govt., straightaway declare stringent measures for recovery of the dues from the defaulters, instead of dilly dallying with defaulting borrowers. The involved politicians and defaulting borrowers should be cornered to effect recovery of the dues, so that the economy will be strengthened. As HSK stated, I also do not support any party. There are honest politicians and Bureaucrats among the lot and it is definitely the efforts of such leaders and executives, India has reached this stage. But much need to be done and the politicians need to realise to be honesty and to follow ethics.
Nationalisation of Banks was not a bad decission. Simlarly no decission is bad. Take for example AAdhar and this is also not bad. But, Aadhar has become a tool of intimidasion and corapsion in the hands of all petty officials acros nation. So moral and lesson is that not decissions but the people implementing it are the calprits of warst kind. If 905 of Govt offcals are of this kind what can happen to nation even if a right decissn is taken. Pl note total emps form 1.5% of total pop and incl their fam members thier strength is about about 7%. But entire nation's prosperity lies in the hends of those 7%. OK.
Re: 7% of population makes or breaks the decission
by on Jul 23, 2015 02:49 PM
Aadhar and PAN need to be integrated with the bank a/cs of all the individuals. Let the Govt., make all MPs of both ruling and opposition, ministers, bureaucrats to register themselves and their family for AADHAR and PAN compulsarily. Let integration of bank accounts be done with Aadhar and PAN in all the cases. Then Govt., will be able to trace the haves and have nots. LPG surrender appeal from PM has been heard and some of the responsible citizens surrendered their subsidised connections. How many MPs of both ruling/opposition parties and ministers and other bureaucrats have surrendered their subsidised LPG connections? PM has any data on that?
The decision taken to safeguard one's chair and not in the national interests are bound have long term adverse effects. India has adopted half-hearted socialism just to mislead the masses. Whereas in a communist country decisions are taken in the national interests and beyond the aura of national leaders. Nationalized and Coperative banks have become white elephants sucking the blood of masses. Even the banks in private sector more or less follow the buraucratic approach with least productivity. Banks is the blood of nation. If the blood is contaminated what is the fate of nation. As the time passes India will have to revisit the old paradigms many of which will call for total change. Criticizing BJP (required to revolutionize) will not change the fate of India, her masses.
