NPAs of PSBs are increasing every year. Inspite of clear guidelines for NPA Management, each Bank adopted its own strategies like enhancing loan quantum, compromise settlements, write off etc. to reduce NPAs. Wilful defaulters are taking advantage of such strategies, diversify Bank’s funds and ensure a/c remains NPA. I suggest that the Govt should constitute a Committee to study the total gamut of NPA Management and offer recommendations to arrest NPAs/to initiate stringent recovery measures.

It was told in the Parliament that the PSBs have written off loans worth Rs 106170 crore in the last 5 years. This fact gives wrong signals to public. NPAs will further increase. Provisions are made out of profits to protect Banks from NPAs and not for writing off of loans out of provisions. Recovery process goes to back seat once the account is written off. Banks should not be allowed to write off loans if the total dues of a single borrower exceed Rs.10.00 lacs backed by collateral security.

( 1 ) MORE & MORE SALES AGENTS ./ SERVICE AGENTS / FRANCHISEES OF THESE PSU BANKS TO BE OPENED.( sales / service of PSU banks will improve, as they will work upto 8 p.m & on sundays / holidays ). ( 2 ) ALL NBFCs TO BE PROMOTED / GIVEN BANKING LICENCE ( encourage many private players to enter, then only PSU Banks will give good service ). ( 3 ) NO STRINGENT CONDITIONS NOW. STRINGENT CONDITIONS CAN BE NOTIFIED LATER / AFTER ONE YEAR OR SO. ( 4 ) AFTER CONVERTING ALL NBFCs INTO BANKS, GIVE NBFC LICENCEs TO ALL LOCAL / REGIONAL / NATIONAL FINANCE Cos. / REPUTED INSTITUTIONS. Thanks for giving us the opportunity to give our views / suggestions. Shanmuganathan.B COIMBATORE ( TN ).

In case of partly secured advances, unrecovered interest on unsecured portion of the loan may be reversed, besides making provision on the unsecured portion as prescribed by RBI from time to time.In case the failure/irregularity continues in future too, the bank must dispose of the property at some point and adjust the loan liability. In this direction, I have been suggesting that banks must go in for “Mortgage by Conditional Sale” in lieu of “Equitable Mortgage by Deposit of Titledeeds” (EMD).

1. How can NPA norms be uniform throughout the world? 2. Suppose a loan turns NPA, but it is fully secured by immovable property the charge on which has been registered in the name of the lending bank. In such case, instead of treating only the overdue amount as NPA, why shall one treat the whole liability in the loan account as NPA? This quantification of NPA is very, very important, because only on this value, income recognition asset classification norms shall apply, not the whole amount.

Merger of banks would have been a better option for better performance and to avoid unnecessary compition....

Bank employees' suicides is a major point to be considered. The working conditions should be kept in mind while pondering them with newer and newer responsibilities and targets. A clerk, posted out of Home town is paid Rs. 15000/- and made to work 12 hours where as his counterpart in central government earns 35000/- who works 10 to 5. This is just an example. Please do have a look, you will feel sympathised for bank employees. Betterment of working conditions is the only solution.

Employees friendly Transfer policy will save cost on residence, Transfer allowances, various travelling expenses, no stress so less expenses on medical, near to house so more work, more profit for banks and more revenue to Govt, Banks can pay equal to CGE to their staff, We can attract investor at better price for share, add them in CPC no no union and we can cease the unrest created by union peoples. Recruitment can reduce cost as new employees salary is less than half they work more so better

1. Recruitment of staff, it will improve service, remove unemployement, new employees less costly so profit will also improve, at the one old staff cost 3 new staff can be recruited, they work 2 times more also, Salary should be hiked more than CGE as they were paid earlier so Talent will come to Banks and we can reduce NPA by proper follow up, Bankers need to compete with professional like CA/MBA/CS so better staff can come only when pay are more, in present pay structure more people are leavin

Merger is the need of the hour Reduce no of Head offices in PSB, in SBI four head office, so most of the staff are busy doing nothing and very less staff in branches, so less productivity, less profit less revenue to the govt. Less salary to employees and offices has made unrest in Banking industry,earlier Bankers were paid more than CGE or Civil servant, if not more they should be paid equal to them so more motivation more work and no corruption, that what CPC has done in 2 pay commissions.