pob final ppt

8/17/2019 POB Final Ppt

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Should Public Sector Banks be given more auton

in recruitment and functioning?

Presented by

Aa

Ab

Ak

Vi


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!ntr"d#$ti"n

•

P#bli$ se$t"r bank:• Public Sector Banks (PSBs) are banks where a majority stake (i.e. mor

is held by a government. he shares o! these banks are listed on stock here are a total o! #$ PSBs in ndia ' ationalied banks * + State (SB * 5 associates) -.

• ationaliation o! banks took ,lace in '+ when the government o!

,rime minister ndira andhi/ nationalied an additional '1 major bank


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A#t"n"%y t" banks

• reater autonomy was ,ro,osed !or the ,ublic sector banks in order !o!unction with e2uivalent ,ro!essionalism as their international counter

• &arsi%han 3ommittee recommended a review o! !unctions o! banks a view to make them res,onsible !or enhancing shareholder value thro!ormulation o! cor,orate strategy and reduction o! government e2uity.

• hey will also be ,ermitted to make suitable ac2uisitions o! com,anie

businesses. his includes both closure and4or merger o! unviable branco,ening overseas o!!ices/ setting u, subsidiaries as also e"iting a ,artic business.


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Pros !or !unctioning

•

6aghuram 6ajan said that Privatiation is not necessary to im,rove thcom,etitiveness o! the ,ublic sector/7 he !urther said/ 7but a change ingovernance/ management/ and o,erational and com,ensation !le"ibilitsurely needed in ndia to im,rove the !unctioning o! most PSBs.8

• ew committee o! ayak has suggested/ among others/ to create a hocom,any to hold government9s shares in PSBs/ increasing the length o

PSB chie!s/ se,arating the ,osition o! chairman and 3:;/ and a,,ointinde,endent directors on bank boards.


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Pros !or recruiting.

• 6aghuram 6ajan(6B governor) said PSBs need to be able to recruit lawhile retaining the talent they have/ but to do so they need to be able tem,loyees res,onsibility as well as the !reedom o! action.

• n ndia/ nationalised banks recruit their generalied o!!icers and clerkBPS.

• BPS conducts one common test every year !or the recruitment o! ;!!i

se,arate test is held !or the clerical cadre sta!! also. he result remainsone year.


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3ons !or =unctioning>

• Pro!it is the only motive.

• hey !ocus only on urban area.

• o !le"iblility in decision making.

• nterest rate are not a!!ordable to re,ay any loans and advances.

• Sta!! not well?versed to the customers.


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3ons o! 6ecruitment>

• o e2ual o,,ortunity to the candidates.

• Personal relations come in between interview ,rocedures.

• @iscrimination in ,ay?grade o! same ,ost.

• o ,ro,er selection ,rocedures.


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3onclusion >

• he overnment must change its mindset !rom Aowner as sovereign8 tAowner as investor8 in terms o! how it engages with the !inancial syste

• ! the overnment still !elt the need to intervene more directly in the

allocation o! credit it could still rely on array o! e"isting majority

government?owned develo,ment !inancial institutions including

a) Power =inance 3or,oration/

b) 6ural :lectri!ication 3or,oration and

c)


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Thank You

pob final ppt

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