Banks have been forced to conduct loan melas to disburse loans sacrificing quality of loaning process and banks have been forced to write off loans so that vote banks of ruling party is safe and become greater.
Banks have been used to carry out all non – productive services like tax collection or salary payment or disbursing subsidy oriented loans under various government sponsored schemes or reckless branch expansion in the name of service area approach or PM Jan Dhan Yojana. Further to make the situation worse, banks have been directed and allowed by previous government to do non- banking business like insurance, mutual fund, demat etc. In this way banks sacrificed the safety of bank’s core assets and wasted time in capturing insurance business from own customers. They could earn a few crores of rupees in commission on selling insurance policies but they lost hundreds and thousands of crores of rupees by financing to bad borrowers or by neglecting monitoring loan asset or by writing off bad loans.
There is a saying ” Penny wise pound foolish”Naked Truth! Starting January 2014, a Reservation Clerk in Railway will earn Rs.35,370 after taking into account the recent 10% DA hike announced by the Govt.On an average there will be jump in salary to the extend of 2.6times after every pay commission. So after 7th pay commission, if we consider the worst case scenario and suppose salary will jumpby 1.6times, from 2016 a booking clerk will get Rs.57,250 as agaisnt the 18000 drawn by Bank Clerk and 30000 drawn by Bank Officers.The entire thing has to be read against the backdrop that during the year 2012-13, Railways made aloss of Rs.24,600 and the minister was quick in attributing the loss to the gloomy Economic Scenario prevailing in the country.It is worth to mention here that IBA restricted the wage revision to 5% citing poor profitability of Banks, whereas data reveals that during the last 5 years, Gross Profit of PSBs jumped by141% to Rs.1,07,731Cr.Can anyone explain the rational prevailing in this GREAT country in giving Rs.57000 salary to a booking clerk who key- in nothing but passenger detail and a bank officer who appraise and sanctions credit worth crores of rupees!Let us project as an example the salary received by a Booking Clerk in Railway and the working-conditions compared to a Bankers. Give maximum publicity to these irritating facts in all the forums!
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