Please enable JavaScript.
Coggle requires JavaScript to display documents.
PRIVATISATION OF PUBLIC SECTOR BANKS, people preferred safety &…
PRIVATISATION OF PUBLIC SECTOR BANKS
need for privatization of PSBs
better human resou. mgmnt
higher degree professional mgmnt
Psb handicap w.r.t market competitors
reasons
employee compensation package
skill sets
skewed age profile
autonomous decision making
control interference govn't
affect competitiveness
outdated systems and practices
faster decision making
innovat. & expertise
innovat. and expertise
private player
have will and capital
quality service and guidance
higher customer satisfaction
enhanced efficiency debt coverage
psbs registered higher NPAs
losing market share
Private sector banks
operating
creamy places
cherry picking customers
PSBs
difficult markets poorer districts
concerns
financial exclusion weaker sections
private sector
driven profit motive
focus affluent sections
urban areas
exclusion
rural areas
PSBs
focus
public interest
prov. services
affordable cost
merger Psbs
decline in PSbs branches
PSB privatization
accelerate trends
Job loss
PSb merger
no. 27 - --12
employee retrenchment
bank branch closure
shrink employ. oppo.
SC/ST/OBCs section deprived
private not allow reservations
safety deposits
significant failure
private banks
financial institutions
no bank failure Psbs
priva.
remove safety guarantee
PSbs
65% commercial bank depsoits
70% individual bank deposits
macroeconomic effects- bank failures
tremendous contagion effect & derail economy
large no. private bank failure - driving force bank nationalization
govn't rescue - merger
ex Lakshmi vilas bank , Yes Bank
Priva. not panacea problems faced Psb
NPAs common both private & public sector banks
difficulty providing additional capital government banks on account of fiscal constraint
banks need additional capital maintain CAR continuing lending operations.
getting rid of PSBs
throwing the baby out with the bathwater.
steps taken strengthen PSBs
Tech enabled smart banking
loan mgmnt system
centralized processing centers
launch Psbloansin59.com
Trade Recievables Discounting sytems(TReDS)
digital lending - MSMEs
Monitoring loans
automated early warning systems
use
third party data
non-financial risk factors
Resolution and Recovery
RbIs revised prudential framework -stressed assets
Governance
into.- non-executive brach
strengthening
board committees
effective use
non-official directors
Human Resource
role based e-learning
putting in place
objective performance mgmnt system
Recaptisation
3.17 lakh crore - government
Mobilization
2.49 lakh crore themselves
Marketing Strategy
doubling dedicated sales force
quadrupling sourcing loans
road ahead
Privatisation limited few PsBs
Graded format towards priva.
achieving objective big banks
merging w/ private big banks
higher risk appetite
lendi9ng capacity
develo
new asset quality review(AQR)
people preferred safety & security -PSBs
proactively detect stress & reducing slippage
high risk cases