Weak Banks

This refers to the report of CII which suggests to close down weak banks. I entirely agree with the view of UCO bank chief that people responsible for creating the NPA are in the CII and they are giving this suggestion. In fact they have no business to talk as they have not managed their organisations well both from financial and product performances.
The industry has been in a highly protected environment with virtually no competition and to be fair with the consumers, they were looting the public. A classic example was how Bajaj /Vespa was collecting advance money from the customer and they has to wait for many months and years to get delivery. The banks were nationlised by Indira Gandhi with a social objective that poor should get banking at affordable costs unlike foreign banks which are run as commercially and they can charge the way they do and provide what in western world calls "customer service" unfortunately the intentions were never achieved fully what really happened was dumping of people by ministers,govt officers,etc under the employment programmes thereby adding to costs. To this added the trade union which increased costs exponentially.
The business magnets added their contribution to mismanagement of the banks by overstating revenues, overvaleing inventories and receivables, and raising finances to acheive their whims which in most cases have been unviable objectives the solution to this problem lies with transparent policy, restating the objectives of the banking enterprise, accountability in all facets, realisticlabour and exit policy,non interference by govt and politicians, giving free hand to professionals. I have been in USA for the last few years and this I felt is required to be published for the benifit of the people so that they know the games played by business community.

Regards,
Sahasranaman