Narendra Modi, India’s Prime Minister is meeting bankers in Pune to discuss the future of banking. Debashis Basu of Moneylife.com has a set of questions that he wants the PM to ask.

I am adding a little more:

1. In the Board Meetings that you hold is any specific task given to your Executive Directors ?

2. What exactly do the non Executive Members of your Board do?

3. If the spread between borrowing and lending is so high, why are you constantly asking RBI to REDUCE interest rates?

4. There are so many PSU banks, how come all of you charge the same interest rates?

5. How much money is spent on training – and how much is really spent on some useful training?

6. You also have an insurance arm and a mutual fund arm. Seriously, should the government not have just one LIC and one UTI?

7. Why not merge all the psu mutual funds and all the psu life insurance companies – we can buy out the foreign partner?

8. How many of your employees go and meet clients for increasing GOOD QUALITY business?

9. How serious is the audit report from the branches? do you even read them?

10. Are the auditors part of the problem or a part of the solution?

11. Is your Board / RBI a part of the problem or a cause of the problem?

12. Why do you need so many guest houses and who really uses them?

http://www.business-standard.com/article/opinion/debashis-basu-what-narendra-modi-won-t-ask-bankers-114122800714_1.html

  1. Hey Subra,

    PSU bankers are paid peanuts compared to work expectations from them (Gone are the days when PSU bank service was considered premium paid job with little to do at work).. so they need guest houses if they want to avail vacations else they cannot afford any hotel accommodation (I am sure you are aware of the other side of the story as well).. I was working with BOB HO Mumbai and senior bankers nearing retirement were drawing close to 6.6L pa.. poor fellows cannot even live if Mumbai if banks don’t provide them with bank owned accommodation at throw away rentals and transport to commute from office to place of stay.. The kind of scrutiny PSU bankers have to go through if loans approved by them fails can eat in to their retirement funds with no actual fault of theirs.. poor fellows at times have to approve loans under pressure from political bosses and later have to bear the pain.. I think all is being done deliberately to promote private/foreign banks…

    Having said that PSU banks must consolidate and should be given free hand to deal with business unlike force loans to big corporates like recently requested for SPICEJET.. Hope this autonomy and fair compensation can solve lot of problems related to PSU banking space..

  2. Hi Subra

    How come no such list was made for 60 yrs of Congress which has destroyed the nation?And experts question Modi within 7 months?!!!

  3. wonder what people think of democracy while blaming congress for anything & everything. WE and our previous generation have voted them to power. even given BJP a chance and pulled them out too. the “mis”ruled congress as they say was voted back to power in 2009 too…..
    Now if the new govt is smart let them prove it how good they are. end of story.
    whatever it is – at least we have a functioning democracy and is better than say minimum 50% of the world it is ruled. Let everyone have the opportunity to question anybody but within the framework of human ethics and legal and constitutional framework.

    NB : I was never a fan or follower of congress nor intend to be a blind follower of any political party too.

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