Suggestions for effective credit appraisal and monitoring of corporate credit-PSBs are facing a serious problem of large accretion to their NPAs which is a cause of serious concern on functioning of PSBs. On analysis of root causes of high NPAs, the main reason attributable is poor quality of credit appraisal and monitoring in PSBs. The suggestions/ approaches suggested in page 1 to 8 can go a long way in improvement in credit quality and arresting further accretion to NPAs in years to come.

Bank should employ field staff for opening account.

The PSBs should act more professionally in terms of expenditure.The internal audit should be qualitative.A third party performance appraisal team should be there to scrutinize the overall performance alongwith NPA.Expenditure limit should be fixed on every year on the basis of performance,both quantitave and qualitative.Expenditure incurred by branches in excess of that certain limit must be duly authorised from proper superiors after rigorous scrutinizing and considering its reasonableness.

PSU banks are facing vicious circle of NPA and to ride off it we should focus:- - To bring transparancy in the working of DRTs and DRT cases of loan amount more than 10 crores pending for more than 6 months be heard on daily basis and must be decided within maximum period of 8-9 months. - loan mela and loan budgets be discarded. transparant & centralised system be adopted' - Staff accountability policy be reviewed for encouraging decision making.

Political and administrative officers interference should be checked, strict penalties should be imposed on erring staff to improve customer service and judicious credit facilities to priority sector and common man of the country who are grossly ignored by so called efficient Private sector Banks.These banks do not consider education loan ,DRI loan and other priority sectors.Govt should cross subsidize PSB ,taxing Pvt Sector, for their services rendered under Jandhan and other priority sector

NPA and other stressed assets is around 14% of gross assets.4-curtail Misc. expenses, perks and car etc to improve profit 5-collect capital from public, LIC and cash rich PSU..PSB should be brought under CAG and role of syndication, middleman and consultants should be ensured be enquired who are main manipulators in managing large unreasonable loans and even restructuring of large ticket loans and sacrifice/loss to PSB,resulting in ill health more provisioning and less profit.

PSB are last hope of finance & prosperity for common man of the country & a hidden treasure for Pvt Sector due to under valuation. PSB should not be privatised at all; instead radical reform needs urgently implemented - 1-Merger of all banks in 5 new named banks to save a lot of overlapping expenses 2-Rationalise & transparent top executives selection & staff strength 3-transparecy in Loan appraisal & sanction system to control NPA and stressed assets which is presently main reason of concern,i

Our government needs Expenditure management which is like saving money is earning money, desperately needed for development and various schemes. First of all, we need control/rationalise expenses/perks of Government departments, Political Leaders and PSU, including BANKS, INSURANCE COMPANIES etc To start with immediately withdraw cars facility to all PSU & PSB officers, except few where it is essentially needed as a part of their routine field duty ,it will save 1000 cr +per month..

10.All SBI Sister Bank being on Same Platform and using Parent Brand is easier to merger at one go with SBI. 11.Human Resources of Merger entity should be managed in way least difficult for Employees. 12.Pay grades of merged Banks should be same at par with all Banks including of SBI However PRP Payments should be linked with Bank Profitablity. 13.Only after merger the True Value of PSU Bank will emerge.

6.All Small PSU Bank should be merged at a time with Big Banks to minimize Loss/delay of Bringing Value In Big Banks 7.Banks having strong Brand Value like BOB, PNB, Canara, BOI, Union Bank of India should be frontrunner in accquiring Small Banks . 8.Banks using Diffrent System Platforms i.e finacle, baancs, FIS should be kept in mind before proceeding for merger. 9.Week Bank Like United Bank should not me merged till such time it becomes profitable or BankWorthy.